How do supply-demand imbalances affect daily stock price movement?
Supply and demand are fundamental forces that determine stock prices. When more investors want to buy a stock (demand) than sell it (supply), the price rises as buyers compete for limited shares. Conversely, if more investors want to sell than buy, the price falls. News, earnings, and market sentiment can quickly shift this balance, causing prices to move. Understanding supply and demand dynamics is key to interpreting price movements in the stock market.