High demand for a stock relative to supply drives the stock price higher
It is not always true that higher risks with stock at a higher price. Demand for a stock is driven by how confident investors are about that stock's prospects. In the short term, things like quarterly earnings reports that beat expectations, analyst upgrades, and other positive business developments can lead investors to be willing to pay a higher price to acquire shares. Thus, high demand for a stock relative to supply drives the stock price higher.
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