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How Stock Prices Are Determined — The Balance Between Supply and Demand
How Stock Prices Are Determined — The Balance Between Supply and Demand The stock market fundamentally operates on the law of supply and demand. When more investors seek to buy a company’s shares, prices rise. Conversely, when more investors sell, prices fall. This balance is the foundation of market price movements. According to market analysts, factors such as a company’s performance, investor psychology, and the broader economic environment also influence prices. When large institutional investors place massive buy orders and sellers are insufficient, the price often rises temporarily. Later, as the market rebalances, the price stabilizes again.
NEPSE TRADING
·13 Oct, 2025