The market is expecting big things for Quice. Can it deliver?

When people think of the stock market, they imagine hundreds of shares being traded at an array of different prices all at once. This understanding is based on the layers of complexity that have been laid on top of the fundamental tenet of the exchange. Once all these layers are stripped away, the crux of the market sees a buyer buying a share while a seller is selling it. The pillar on which this function is carried out is the valuation or the expectation that a buyer and seller attach to the company itself. On one hand, the buyer expects that he is getting the share at a bargain while the seller considers the share to be overpriced and is selling based on his understanding.

The price at which the share is traded can be considered as being the point at which both parties are agreed upon. In other words, this is their valuation of the company based on the future projections of income, revenue and economic conditions. In order for the transaction to be carried out, this valuation is the rupee amount that both parties agree upon and the price is set. In economic jargon, this is known as price discovery as the trading allows for the price to be determined and set.