Question
In: Finance
One thing moving the US equity markets is supply and demand, expatiate on this.
One thing moving the US equity markets is supply and demand, expatiate on this.
Solutions
Expert Solution
United State equity market are driven by twin factors of supply and demand and which helps in the price discovery of various stocks in the market.
Stock Market are always driven by price and volume so only such stocks are always preferred who have large volume in stock market as it will help in generation of fair price because there are huge number of buyers and sellers who are participating in the United State Equity Market from all across the globe and they help in discovery of fair prices of various shares through active participation.
when there is higher demand for a stock, it can be seen through movement in its prices and it is going upward and when there is a lower demand of the share, it can be seen that there are no buyers of this shares and they are continuously going downwards.
Prices of shares like Tesla which have been continuously discovered by active participation of various bullish investors on the upside, and they want to buy the stock anyhow whereas there are various stocks like airline industry stocks which investors are willing to offload at any prices and they are participating on the shorting side.
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25.24
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4.36
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23.15
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