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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If no one wants to sell shares then there is no market price at all, because there are no market transactions. But in practice that never happens for shares on major exchanges, though it happens all the time for shares in privately held companies.– Mike ScottDec 28, 2017 at 8:17
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1 Answer
You are correct. It's nothing more than the Law of Supply and Demand.
https://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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right. It's not so much that no-one wants to sell as that no-one wants to sell at (say) 100, and many want to sell (but none to buy) at 200, and somewhere in between is a price where the number of sellers and buyers matches. Dec 28, 2017 at 17:45