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What are you talking about? The value to the people is what they will pay for it. If nobody is buying it at a certain price, then there is nobody that feels it
by hueving 11y ago
What are you talking about? The value to the people is what they will pay for it. If nobody is buying it at a certain price, then there is nobody that feels it has value at or above that price. There is no 'real value' of something vs its market value.
- avalaunch 11y agoI think the distinction being made is the value of the stock vs the value of the company, which is not always perfectly in sync. That's why, at any given time, a stock can be undervalued or overvalued. For example, I think you'd be hard pressed to state that the value of a stock right before a company announces unexpected losses is representative of the actual value of the company. The perceived value, prior to the announcement, is too high.
- curun1r 11y agoSometimes things have an intrinsic value, often because of some utility that they provide. Sometimes the only value is the belief that someone else will pay more for it. [1] When it's the latter there's a difference between the real value and the perceived value. This is why we use the term "correction" to describe a situation where the perceived price falls to match the "correct" price. [1] https://en.wikipedia.org/wiki/Greater_fool_theory https://en.wikipedia.org/wiki/Greater_fool_theory