Define Equilibrium as It Relates to Markets

question 101

Essay

Define equilibrium as it relates to markets. Describe the process by which a market reaches a new equilibrium. Include an appropriate diagram.

---

Definitions:

Stock

Financial instruments representing ownership in a company and a claim on a portion of its assets and earnings.

Accumulated Earnings

The total net income of a company retained within the business after dividends are paid, without distribution to shareholders.

Distributions

Payments made by investment funds or companies to shareholders or partners, typically from profits or asset sales.

Owners

Individuals or entities that hold the legal rights to possess, use, and dispose of an asset or property.