Economics 101: Supply and Demand (transaction, sell, stock market, balance)

[ddm2k]

Don't you just hate when people keep saying this? There should be a fine assessed.

[COcheesehead]

I hate it that a lot of folks still don’t understand it.

[ddm2k]

Originally Posted by COcheesehead

I hate it that a lot of folks still don’t understand it.

True.

Or price elasticity.
Or natural monopolies.
Or globalization.
Or tariffs.
Or competitive advantage vs. absolute advantage

I didn't major in it, but I did take macro- and micro-econ as electives. You learn enough to start making better consumer decisions.

[hitpausebutton2]

Originally Posted by ddm2k

True.

Or price elasticity.
Or natural monopolies.
Or globalization.
Or tariffs.
Or competitive advantage vs. absolute advantage

I didn't major in it, but I did take macro- and micro-econ as electives. You learn enough to start making better consumer decisions.

Or just plain greedy when their is plenty of supply.

[mathjak107]

they say this a lot in the stock markets ,they love to say there are more buyers than sellers or sellers than buyers but for every seller there has to be a buyer and for every buyer a seller .

there can be no transaction without it . what changes is what someone is willing to pay . but there are never more shares being sold than there are buyers for those shares .

[Thatsright19]

Originally Posted by ddm2k

Don't you just hate when people keep saying this? There should be a fine assessed.

I guess you could say that there’s more supply of “supply and demand” comments than demand?

[ddm2k]

Originally Posted by thatsright19

i guess you could say that there’s more supply of “supply and demand” comments than demand?

Hahahaha

[COcheesehead]

Originally Posted by mathjak107

they say this a lot in the stock markets ,they love to say there are more buyers than sellers or sellers than buyers but for every seller there has to be a buyer and for every buyer a seller .

there can be no transaction without it . what changes is what someone is willing to pay . but there are never more shares being sold than there are buyers for those shares .

For every completed transaction there is a match of buyer and seller. There are imbalances and not all orders are executed.

[mathjak107]

correct but then no transaction takes place and no prices logged . it has to take place to count . only executed orders effect price so every share needs a taker that is sold .

[COcheesehead]

Originally Posted by mathjak107

correct but then no transaction takes place and no prices logged . it has to take place to count . only executed orders effect price so every share needs a taker that is sold .

If I want to sell and enter an ask that goes unfilled, I drop my ask until sold or I pull my ask. Same concept for a bid only in the opposite direction. So the prices that it did not sell at are not logged as you call it, but yet they motivate (move) the market one way or the other. When there is an imbalance on one side or the other the market it is said to have more buyers or sellers. Not everyone goes home with a dance partner, but everyone gets a shot to shake their booty.