The effect on equilibrium price is undetermined. See Figure 6. Consider the market for IBM stock. IBM reports record quarterly earnings, while the Court orders the company to sell 20 million shares of stock. The high quarterly earnings will increase buyers preferences for the stock.
Demand shifts to the right.
The court order causes an increase in the amount of stock available on the market. Supply shifts to the right. The effect on equilibrium price is undetermined. However, equilibrium quantity increases. Consider the market for St. Louis Rams Tickets.