When more people buy a certain stock does it make the stock price drop or increase? and East Coast Joint Stock Third Brake No.12

When more people buy a certain stock does it make the stock price drop or increase?

Throughout the day stock prices keep increasing and decreasing, most people like me just care about the final price for the day, was it an increase or decrease. I know there are a number of reasons a stock increases or decreases in price, but does others buying a stock effect the price? If 10,000 people quickly buy or sell a stock how does that affect the price?


Stock best answer:

Answer by peter.jungmann
if there are more people who want to buy, the price goes up. More who want to sell, the price goes down. ( in general.) As the price goes down, more people will want to buy..

The price change isn't dependant on the number of transactions as much as (of course!) how much people are willing to buy or sell the shares for.

Market technicians (chart watching folks,) look for price and volume trends together -- if a stock trades at a much higher price with much higher volume, that indicates much more demand to hold the stock. If it trades much lower with higher than normal volume, it indicates much less demand to hold the stock.

It's very much a supply and demand thing -- based on what people want. Which is why often the psychology of the market is as important or sometimes more important than the financial health of the companies in question.

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East Coast Joint Stock Third Brake No.12


Image by hugh llewelyn
East Coast Joint Stock Bain 55' Third Brake No.12 (BR No.SC3620E) in varnished teak livery and built by NER (York) in 1898. At the National Railway Museum York, 09/10.

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