If the buyers are more, the demand will be high, as a result the price will go up.
There is a constant battle between the buyers and the seller to decide the price of a stock in the market. The price of a stock depends on many external and internal factors, but all gets drawn down to one important factor, that is demand and supply. Why does price of a stock move in a zig-zag pattern
If you have seen the chart of any stock, you will observe that the the stock prices have always moved in a zig-zag pattern. Chapter 8: The Investor and Market Fluctuations What are market fluctuations In this blog post I will try to breakdown chapter 8 of the intelligent investor with as simplicity as possible so that even a beginner with no major experience in stock market will be in a position to digest the knowledge. The book is authored by Benjamin Graham, who has laid all the principles of value investing in one single book. The intelligent investor is referred to as the bible for value investing by many successful investors. An Example mentioned in the book for better understanding of market fluctuations:.Why does price of a stock move in a zig-zag pattern.Chapter 8: The Investor and Market Fluctuations.
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