Supply and Demand: Big Volume Demand at Key Points

The price of almost everything in your daily life is determined by the law of supply and demand. What you pay for your lettuce, tomatoes, eggs, and beef depends on how much of each is available and how many people want these items. 

Even in former Communist countries, where the difference between haves and have-nots was theoretically nonexistent, supply and demand held sway.

There, state-owned goods were always in short supply and were often available only to the privileged class or on the black market to those who could pay the exorbitant prices.

 This basic principle of supply and demand also applies to the stock market, where it is more important than the opinions of all the analysts on Wall Street, no matter what schools they attended, what degrees they earned, or how high their IQs.

 Big or Small Supply of Stock It’s hard to budge the price of a stock that has 5 billion shares outstanding because the supply is so large. Producing a rousing rally in these shares would require a huge volume of buying, or demand. On the other hand, it takes only a reasonable amount of buying to push up the price of a stock with 50 million shares outstanding, a relatively smaller supply. 

 So if you’re choosing between two stocks to buy, one with 5 billion shares outstanding and the other with 50 million, the smaller one will usually be the better performer, if other factors are equal. However, since smaller-capitalization stocks are less liquid, they can come down as fast as they go up, sometimes even faster. In other words, with greater opportunity comes significant additional risk. 

The total number of shares outstanding in a company’s capital structure represents the potential amount of stock available.

But market professionals also look at the “floating supply”—the number of shares that are available for possible purchase after subtracting stock that is closely held. Companies in which top management owns a large percentage of the stock (at least 1% to 3% in a large company, and more in small companies) generally are better prospects because the managers have a vested interest in the stock.

There’s another fundamental reason, besides supply and demand, why companies with a large number of shares outstanding frequently produce slower results: the companies themselves may be much older and growing at a slower rate.

In the 1990s, however, bigger-capitalization stocks outperformed small-cap issues for several years. This was in part related to the size problem experienced by the mutual fund community. It suddenly found itself awash in new cash as more and more people bought funds. As a result, larger funds were forced to buy more bigger-cap stocks. 

This need to put their new money to work made it appear that they favored bigger-cap issues. But this was contrary to the normal supply/demand effect, which favors smaller-cap stocks with fewer shares available to meet increases in institutional investor demand. Big-cap stocks do have some advantages: greater liquidity, generally less downside volatility, better quality, and in some cases less risk. 

And the immense buying power that large funds have these days can make top-notch big stocks advance nearly as fast as shares of smaller companies. 

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Lower Costs With Wind Power Energy

Every home and business around the world that uses electricity knows how much they are spending each month for energy costs. It seems like the bills are growing every month too. There are many sources, such as wind power energy, that is able to reduce these costs drastically.

There are some areas where wind is not going to be as good as others. Solar power will be an option in many of these areas though. There are answers to saving money in a lot of sources that will use products that are clean and already there. Nothing has to be produced.

The sun and the wind are things that are already there and will always be there. People can use these sources to generate their own power. It is something that is not going away anytime soon so this method will be great to pass on to younger generations.

Large wind turbines may be grouped together in some areas. These are ones that are placed by energy companies to try to cut down on their costs. Homes and businesses can run on the same thing but will usually use a smaller turbine.

---------------------- ---------------------- The engineers will be able to determine what turbines will work better for certain areas or if they will work at all. The placement of them is going to be a huge factor in the effectiveness of them as well. Consulting with an engineer is going to give someone an idea of what they need and how much it will cost for them to get their system into operation.

There are many things that are going to be important to consider before choosing which wind turbine to get. The amount of energy consumed in a home should be taken into consideration as well as the amount of wind that is available around the property. Trees can cut down on the wind source too.

They will block the wind plus they will change the pattern of the wind flow in certain areas. Wide open areas are the best places to put a wind turbine. Wind will still blow in other areas but it is not as effective as what it would be in open areas. Engineers will be able to evaluate the property and figure out if it will be beneficial to install a turbine or if there would be too many obstructions.

Using the wind for energy will not cause any pollution either. It is something that is available simply by providing the upkeep to the turbines and the rest of the system. There are many things that are going to be extremely important when taking care of these systems.

Some days will be better for wind. Every area of the world will have that because on calm days, it is not going to produce as much power as it will when the wind is blowing strong. Everybody has their own ideas of different kinds of green energy solutions. They may like wind power better or solar power better.
Both of them are going to better on certain days. The sun is not going to be as abundant on wet and rainy days as it will when it is 80 degrees and sunny. The same is true with wind. The worst weather is the best for wind turbines to produce power to a home.
Wind power energy will be a good answer to high energy bills. It can help to run any electronic device in the home or office without a problem. Some days will be better for it but there will be a lot of different choices for people who are looking into a renewable energy source.

With energy costs on the rise, there are many options available for consumers. The high cost of electricity can be frustrating to homeowners and business owners. People have options with Vanguard Energy. Vanguard Energy is able to show consumers their options with solar and wind energy. They will install the systems so that they will work efficiently. They have solutions to green energy needs and are experts in this field

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