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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: KevinThompson who wrote (5757)	3/4/1999 11:29:00 PM
From: Bill Martin	Read Replies (1) \| Respond to of 9256

Re: ...there is now more supply of the stock and hence the ability for price action to move to the upside (increase)... I'm not sure what you meant to say, but this is backwards. Extra supply drives prices down for any commodity -- stocks included. Extra demand drives prices up. Think about some huge fund who owns 50% of a company suddenly dumping it all. This also doubles the available supply of shares to trade, but you wouldn't expect it to drive the price up. This is Econ 101 Supply & Demand. Bill