Ever wondered how the stock market works? 🤔
Free markets are based on the idea of supply and demand, so let’s dive in! 🤑
Think of it like a grocery store; the more people who want a product, the more the price goes up! 🛒
Since investing in a stock is betting on the success of a company, the company's product succeeding often result in the stock succeeding 🚀
For example, if a company releases a new product, the demand for its stock may go up and the price will increase 📈
A stock’s supply and demand is affected by many factors, such as the economy, consumer confidence, and investor sentiment. 📊
Similarly, if a company has lots of complaints & bad reviews about their products and overall prospects, the stock may go down 😥
It's important to remember that supply and demand is a dynamic and changing relationship 🤝
This is why it’s important to keep an eye on company news and to interact with your companies on a daily basis 🤔
By understanding supply and demand, investors may gain a rough understanding of the supply & demand for their companies’ profits. 🛍️
Keep a close eye on your stock investments and happy investing! 🚀
Choose an option
Results in stock success
Does not correlate in stock success
Matches the demand cycle
Rigid and unchanging relationship
Fixed relationship
Dynamic and changing relationship
Determine success of company products
Beat everyone at economic trivia
Increase the risk of their portfolio
Factors of Supply/Demand
Equilibrium Price & Quantity
Elasticity of Supply/Demand