Friday, November 11, 2011

Supply and Demand in the Stock Market

Trading stocks is an exercise in supply and demand.  Why does the price fluctuate throughout each hour of trading?  The relatively scarce supply of that company's shares allow for a starting price based on a variety of factors.  From that point forward, the price rises and falls as shares are bought and sold.  What makes a stock valuable? What inspires the purchase of a stock? 

http://breakoutreport.com/articles/economics/supplydemand.htm

Read the article linked above and write a short explanation of how supply and demand affect the sale of stocks.  Your answer should be 2-3 paragraphs in length and include two pictures relating to the topic.

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