GREY:CIMVF - Post by User
Comment by
JayBeon Jan 12, 2004 11:09am
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Post# 6877883
RE: A little help?
RE: A little help?The same holds true for Supply as well....If the supply is above market price then they aren't truly part of supply. It is the meeting point between supply and demand which sets the market price...but, and here is the paradox, it is the market price which sets supply and demand...two sides to the equation and both are needed...
However too much supply tends to drive market price down and the converse for too much demand. However, economics is for purists, ignoring market realities such as speculation...which can, by itself, account for the price differential between stocks supplied and stocks demanded.