as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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how does the law of supply and demand influence the stock market?
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the law of supply and demand has a major influence on stock prices. if demand for a stock increases, the price will generally rise, and if there is an abundance of supply, the price will fall. as investors are constantly buying, selling and trading stocks, the demand for and supply of each stock will affect its price in the stock market.
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