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How are financial market prices determined?

Curious about financial markets

How are financial market prices determined?

The prices in financial markets are determined by the forces of supply and demand. Buyers and sellers come together to exchange financial assets, such as stocks, bonds, and commodities, and the price of the asset is determined by the amount that buyers are willing to pay and the amount that sellers are willing to sell for. When demand for an asset is high, the price tends to go up, and when demand is low, the price tends to go down. Conversely, when there is an oversupply of an asset, the price tends to go down, and when there is a shortage, the price tends to go up. In addition to supply and demand, other factors that can influence prices in financial markets include economic conditions, company performance, geopolitical events, and changes in government policy.

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