2 ms·
Question: If a stock is overvalued, and corrects as a result of an investigation pursued in furtherance of an aborted sale, was stockholder value destroyed, or
by salawat 4y ago
Question:
If a stock is overvalued, and corrects as a result of an investigation pursued in furtherance of an aborted sale, was stockholder value destroyed, or merely shown to be unrealistic in market expectation?
This is my problem with market valuations. Seldom have I seen companies where even shallow diligence bears out what tend to amount to inflated prices.
Contract law has come into the forefront of my "this BS warrants a deepdive" list. Seems like it's something both central to modern life, yet largely predicated on a bunch of hokum to the point contracts often contain what I consider "legal chicken clauses" stuff you can get thrown out, but the effort to do so being enough to act as a chilling effect..