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Finance

Why the Stock Market Goes Up And Down

In a market economy, any price change can be explained by a temporary difference between what consumers are demanding and what providers are supplying. As a result, economists highlight that markets tend towards equilibrium, where demand meets supply. This is how it works in the stock market; demand is the number of shares people want to buy, while supply is the number of shares people want to sell.

If more people want to purchase a stock than to sell it, there would be higher demand than supply, and the stock price would rise. In contrast, if more people want to sell a stock than to buy it, there would be a higher supply than demand, and the stock price would fall.

View more information: https://marketrealist.com/p/why-does-stock-market-go-up-down/

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