Share price determination
Am new to trading, and just wanted to ask.
Am I right in saying that if you have fewer sellers than buyers, or if no one wanted to sell their shares that then the price of said shares would rise?
And vise-versa if you had more sellers selling shares than you had buyers will to pay that price then the price would drop?
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You are correct. It's nothing more than the Law of Supply and Demand.
en.wikipedia.org/wiki/Supply_and_demand
Given a fixed supply:
a. when demand goes up, prices go up.
b. when demand goes down, prices go down.
Given a fixed demand:
a. when supply goes up, prices go down.
b. when supply goes down, prices go up.
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