Stock balance between supply and demand
The stock market determines prices by constantly-shifting movements in the supply and demand for stocks. The price and quantity where supply are equal is called “Market Equilibrium”, and one major role of stock exchanges is to help facilitate this balance. Maintaining a balance between daily supply and demand is a tall order. Most businesses can’t do it very well. And, in fact, they are so bad at it that they eventually have to call in outside help to manage it all. Here’s how successful businesses maintain that balance. This divide is a key reason why companies are so often trapped into selling excess products well below market rates or lose sales because an inventory shortage makes it impossible to fulfil demand. Bringing the supply and demand sides of an enterprise together can represent a significant opportunity for efficiency and value creation.