Firms shares demanded equals the quantity supplied

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Reference no: EM131241808

For each stock in the stock market, the number of shares sold daily equals the number of shares purchased. That is, the quantity of each firm’s shares demanded equals the quantity supplied. So, if this equality always occurs, why do the prices of stock shares ever change?

Prices seldom change.

Prices are set at a different level each day by Wall Street traders.

Prices change in reaction to a mismatch between quantity demanded and quantity supplied.

Prices change due to the whims of those selling shares.

Reference no: EM131241808

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