Explain how supply and demand influences the price of common stock. What other forces affect stock prices?

Supply and demand are the primary factors that influence the market price of common stock. If there is a high demand for a particular stock with limited available supply, the price of that stock is likely to increase. Conversely, if there is an oversupply of a stock and not enough demand for it, its price will decrease. Factors that affect supply and demand include corporate earnings, economic indicators, and geopolitical events. Other forces that affect stock prices include interest rates, investor sentiment and speculation, company news and events such as mergers and acquisitions, and regulatory changes. Additionally, external factors such as natural disasters, pandemics, or wars can have a significant impact on the stock market, leading to changes in stock prices. It is essential to keep in mind that stock prices are influenced by a complex combination of factors, and predicting their future movements can be challenging.