Supply and Demand - Ultimate Responsibility
So, Portfolio Bunny wanted to know if you could figure out who is responsible for the supply and demand aspect of stock prices and movement in the stock market. Did you make a guess?
Well, Portfolio Bunny would love to say it's her (it would sure be an ego boost!), but that's not true. The answer is (drum roll, please)...
Everyone who buys and sells stock in the stock market. From the largest mutual funds to the smallest investor, everybody plays a part in determining supply and demand in the market. It is the one fact that will save your portfolio from disaster, so don't ever forget it. In future posts, you will learn more about the importance of this commonly ignored fact.
Mental Post-It Note: The market moves up or down based on supply and demand. Supply and demand is determined by everyone who is part of that market.
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