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What about a market that brings together buyers and sellers to bet on how companies are doing? A share price is really a function of how we expect a company to
by randomracer 8y ago
What about a market that brings together buyers and sellers to bet on how companies are doing? A share price is really a function of how we expect a company to do in the future, but what if we bet on specific metrics? For example, I expect Company A to hit $100 in gross revenue this quarter, so I'd like to bet on it - as opposed to the several variables that affect share prices. The share price may reflect the Company's guidance - but revenues it expects in the future, but not really a reflection of history. This could also be a bet on other metrics - Snapchat number of users, etc. etc. I'd argue that this can be a more rational betting market. There are several metrics that aren't 100% correlated with stock prices.