Forum Archive Index - September 2000

["charlie brown" <gordy_gecko@hotmail.com>]

Oli

I can only hope you paper wasn't on an economics matter.  5th form economics 
taught us the fundamentals of supply and demand did it not?

You wrote:

"Now if I was to say "it's a sellers' market", I would be saying that there 
are more sellers than buyers, and the price was falling because the buyers 
dictated the terms.  In a "sellers' market", buyers rule the day."

The NZSE is just like any other market place, in that it facilitates an 
exchange of commodities.

If I was a seller in this market (supplier) and I was trying to obtain the 
highest price for my commodity (in this case shares) then I would expect "a 
sellers market" to be when I could attain this price (As the supplier I have 
the advantage as I have the good). On this analysis if I was a buyer then 
(ie demanded the good)(subject to my price ceiling) I would be (could be) 
paying too much for the shares unless I believed they would appreciate in 
value or provided a favourable yield.

Hence in a sellers market a scarce resource (the shares)will force up the 
price buyers are prepared to pay for them.  This can not mean it is a buyers 
market therefore.

Proposition:  When you are selling, do you hold the power or does the buyer? 
  You put your sell order in and it is simply an accpet or deny system isn't 
it.

Conclusion:  In a sellers market, sellers rule the day.



>From: oli@vodafone.net.nz
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: [sharechat] oli replies... BG, Sam, RB
>Date: Wed, 13 Sep 2000 11:43:25 +1200
>
>Sorry I didn't reply to comments earlier - have been trying to get a paper 
>written.
>
>BG - you took that quote you used out of context and changed the meaning.  
>It
>was directed at explaining why, when sellers dictate the price, sellers 
>rule.
>  You said when sellers rule the day, the price goes down.  I disagree.
>Now when there are more sellers than buyers, buyers rule, and the price 
>goes
>down.  You're just getting those two the wrong way around. Originally you 
>said
>that if there were more sellers, then sellers rule, and the price goes 
>down.
>
>Should be: when there are more sellers, buyers rule, and the price goes 
>down.
>  I think that explains our difference.  Mere semantics.
>Now if I was to say "it's a sellers' market", I would be saying that there 
>are
>more sellers than buyers, and the price was falling because the buyers 
>dictated
>the terms.  In a "sellers' market", buyers rule the day.
>
>Sam - thanks for your comments.  You said "shame about [zedex's] product"  
>What
>is it exactly?
>
>Rebecca - no I don't sleep.
>
>Rgds,
>oli
>
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