Homework answers / question archive / For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then what is true?

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then what is true?

Marketing

Share With

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then what is true?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Like any asset, for a stock to be in equilibrium, demand and supply must be in balance. Under these conditions, given the current quantity of stock available in the market, there is no pressure for the price to deviate to the upside or downside as a result of technical imbalances.