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A stock's current price already reflects all public available information including its future value. You're assuming that "the average wall street trader" know
by orky56 11y ago
A stock's current price already reflects all public available information including its future value. You're assuming that "the average wall street trader" knows less thus causing the stock's price to not be accurate. Would love to hear a counter argument to that.
- sliverstorm 11y agoThe assumption is that the average wall street trader has the information in hand but doesn't understand its significance.
- elihu 11y agoA stock may be priced accurately by the market according to a typical risk profile, but an individual investor may have a higher-than-average tolerance for risk.