The stock market determines prices by constantly-shifting movements in the supply and demand for stocks. Supply refers to the total number of stockholders who would be willing to sell their shares at any price whereas Demand refers to the total amount of stock that potential buyers would be willing to buy at any price. The price and quantity where supply and demand are equal are called “Market Equilibrium”, and one of the major roles of stock exchanges is to help facilitate this balance.

Supply and Demand in Four Phase

Supply and Demand in Four Phase – a Case Study on DSEX