Security price formation is the process by which prices are set for traded securities. The prices of securities traded in organized exchanges are determined by the interaction of supply and demand from market participants. The prices of securities traded in over-the-counter (OTC) markets are set by dealers who act as market makers and quote bid and ask prices for the securities they are willing to buy or sell. The prices of some securities, such as those issued by governments, are set by auction. The price of a security is determined by the forces of supply and demand in the market for that security. The supply of a security comes from the issuer of the security and from investors who own the security and are willing to sell it. The demand for a security comes from investors who want to buy the security. The price of a security is set at the point where the supply and demand for the security are equal. The interaction of supply and demand in the market determines the price of a security. The price of a security is set at the point where the supply and demand for the security are equal. The price of a security is determined by the forces of supply and demand in the market for that security. The supply of a security comes from the issuer of the security and from investors who own the security and are willing to sell it. The demand for a security comes from investors who want to buy the security.

The basic idea behind security prices is that they are set by the supply and demand for the security. The price of a security is determined by the interaction of the supply and demand for the security in the market. The price of a security is set by the supply and demand for the security. The price of a security is set by the supply and demand for the security.