Demand and supply in the stock market refer to the forces that determine stock prices based on buying and selling activity.
When demand for a stock increases, its price tends to rise as more investors want to buy it.
Supply affects stock prices; as more shares are available for sale, prices may fall if demand doesn't match the supply.
Stock prices fluctuate based on the balance of demand (buyers) and supply (sellers) in the market.
When demand equals supply, the market reaches equilibrium, and stock prices stabilize at this point.