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Sagot :
If there is a demand for more shares than are available at the offering price, the offering price is said to be overpriced.
This all happens due to the law of demand and supply.
The law of supply and demand is a theory that seeks to explain the relationship between the availability as well as the desire for a product, such as a security, and its relative price.
Typically, when the availability of shares in the market is low and the demand is high, it boosts the price of the shares in the market..
Alternatively when there is high availability of the shares and the demand for shares is very low then it leads to the reduction in its price.
The law affects the stock market by determining the prices of the individual stocks which make up the market.
To know more about law of demand and supply here:
https://brainly.com/question/4596280
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