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Stock Market Basics |
What are the stock market basics? How does the stock market work? A short and simple response is based on supply and demand. Buyers and sellers of stocks come together (through an exchange specialist) to signal whether they want to buy or sell a particular stock, the quantity of stock to be bought or sold, and the price at which the trade is to be executed. For a given stock price, if there are more sellers than buyers, the stock price goes down, more buyers appear, and a transaction occurs. If there are more buyers than sellers, the reverse holds true and the stock price rises. These are the stock market basics. A more complete answer would be that the stock market basics work on global macro-economic criteria, causing up and down stock market movements in large cyclic bull market and bear market phases. Here at Growth Stock Analytics, we are interested in the former simpler basics of stock market supply and demand. Understanding the concepts of whether a stock is under accumulation (demand exceeds supply) or distribution (supply exceeds demand) is a first step towards understanding stock market basics. Let us take out the guesswork for you. Growth Stock Analytics offers stock market investors entry to our proprietary stock numbering system. Our HI-EPSRSTM Stock Database
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