2 ms·
The price of the stock reflects the underlying value though, out of a increasing pool of resources. Companies transmute inputs into outputs of greater future va
by skeeter2020 5y ago
The price of the stock reflects the underlying value though, out of a increasing pool of resources. Companies transmute inputs into outputs of greater future value. Every stock is not a GameStop competing to extract a bigger share of a limited pool of tullip investors.
- PaulDavisThe1st 5y agoThe price of a stock reflects beliefs about the prospect for price growth [0]. Since these beliefs may be nth-order derivatives (i.e. I believe that other people believe that other people believe that ....), those beliefs have varying levels of connection to "underlying value". [0] or, alternatively, dividend payouts, but that's a totally different story.