Anavex Life Sciences Corp (AVXL)

[poguemahone]

Tom:

I stick to pretty basic financial and economic principles to explain price action in a security.

If the stock price increases, the demand for the stock outweighed the supply of available shares at a given price point, so the price rises until equilibrium is reached.

Conversely, if the stock price declines, the demand for the stock was less than the available supply of shares at a given price point, so the price drops to increase the demand for the stock to bring the supply/demand relationship back to equilibrium.

Economics 101

Disclaimer: The following analysis above assumes that markets are "somewhat" efficient and that both sides of a transaction have access to similar information about a security at a given time. Some on this board believe this assumption not to be true.