I have something that has bugged me for a while. I know there will be some people here that will have a better understanding of this than me, so I would like to hear your thoughts on this:
Why do prices move the way they do? What really is the cause of it?
It has probably been asked many times before I cant see anything though. I have heard a couple of different versions myself, and obvoisly have my own view. It may be totally wrong, it wouldnt suprise me.
I will explain a little more by what I mean in my questions...
Does price move up because there is actually not enough sellers there and therefore price goes up till it will reach an equilibrium and stay at its current rate? I have heard a different way which sounds a bit crazy .. i read somewhere someone said there is always an equal number because without a buyer there cannot be a seller because its a 'zero' sum game. If that is the case why does price move? if there is equal number of sellers to buyers how is price decided? who decides the prices too. there must be some corporation that decides on the ultimate price. I would imagine it to be a computer as well so that it can calculate fast enough the changes in buyers and sellers.
Maybe this is all totally wrong, i would like to be enlightened.
Why do prices move the way they do? What really is the cause of it?
It has probably been asked many times before I cant see anything though. I have heard a couple of different versions myself, and obvoisly have my own view. It may be totally wrong, it wouldnt suprise me.
I will explain a little more by what I mean in my questions...
Does price move up because there is actually not enough sellers there and therefore price goes up till it will reach an equilibrium and stay at its current rate? I have heard a different way which sounds a bit crazy .. i read somewhere someone said there is always an equal number because without a buyer there cannot be a seller because its a 'zero' sum game. If that is the case why does price move? if there is equal number of sellers to buyers how is price decided? who decides the prices too. there must be some corporation that decides on the ultimate price. I would imagine it to be a computer as well so that it can calculate fast enough the changes in buyers and sellers.
Maybe this is all totally wrong, i would like to be enlightened.