Combination of Forces Increases Demand, Reduces Stock Supply

By Chet Currier, Ap | THE JOURNAL RECORD, December 5, 1985 | Go to article overview

Combination of Forces Increases Demand, Reduces Stock Supply


Chet Currier, Ap, THE JOURNAL RECORD


NEW YORK - As they seek to explain the baffling boom that has taken place lately in the stock market, some analysts are turning to some very basic concepts: Supply and demand.

The point may seem so obvious as to be no explanation at all. But as long-time students of the market point out, it isn't economic statistics or political decisions that cause stock prices to change.

They rise when demand increases, supply decreases, or both. And right now, these analysts maintain, a combination of forces appears to have increased demand for, and reduced the supply of, common stocks.

On the supply side, they say, takeover and buyout activity over the past couple of years has resulted in a shrinkage of the amount of stock available for public trading.

The question of demand is more complicated. Much of technical analysis, as practiced by countless followers of the market in countless ways, is devoted to trying to measure past, present and futuredemand for stock.

Still, some analysts say, an important shift appears to have occurred in the factors that determine demand for stocks, as opposed to other investment alternatives such as money-market securities, real estate and tangible assets.

With the decline of inflation and interest rates, the returns investors have realized in many non-stock investors have diminished. Even if only by default, that tends to enchance the appeal of stocks.

""The transition from the days when investors opted for tangibles such as real estate, collectibles, antiques, precious metals and high-return savings over equities has gone unnoticed to many,'' says Yale Hirsch, an Old Tappan, N.J., financial adviser who contends that a ""green tide'' of investment money is flowing into the stock market.

""Now it's dawning on investors that this could be one of the grandest bull markets of them all. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Combination of Forces Increases Demand, Reduces Stock Supply
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.