Question

O o How does the price of a stock change over time? What does it mean for the stock market to be in equilibrium?

Answer 1

Demand and Supply are the main factors for a stock price to be moved up and down in it's value. These are called as Market Forces. The greater the stock is bought by the investors the more the price can surge, the lesser the stock is bought the more the value of a share get's declined. Over the time, if the stock is making a series of successful gains and alluring the investor's attention, most possibly the rate of return would be assume higher in the future projections.

Market Equilibrium is achieved when the demand and supply concatenate on one point , where all the buyers and sellers agreed to the same price level and equilibrium point is where both the supply and market demand has met.