Question
-
What are the fundamental factors on which price depends?
1 Answer
<p>Trends are generally created by four major factors: government, international transactions, speculation/expectation and supply and demand. These areas are all linked as expected future conditions shape current decisions and those current decisions shape current trends. Government effects trends mainly through monetary and fiscal policy. These policies effect international transactions which in turn effect economic strength. Speculation and expectation drive prices based on what future prices might be. Finally, changes in supply and demand create trends as market participants fight for the best price.</p>
Please select pages to share
shared
