Vouched for the comment. Not sure why it was flagged. The rationality of the stock market reminds me of the Winston Churchhill quote: "Democracy is the worst

Vouched for the comment. Not sure why it was flagged. The rationality of the stock market reminds me of the Winston Churchhill quote: "Democracy is the worst form of government, except for all the others." The market is irrational, but it's based on the best information we have. Admittedly, that information is limited and sucks. Heck, it sucks even if you actually work at a company in question! Even the people there can't be sure what the stock price will do. > We knew the value of the stock to the penny starting in April of last year, but for months it traded at over a 25% discount. Why do we pretend this system of price discovery works when it can't even discover a price that has been printed in newspapers? The answer is clear: the market wasn't confident the sale would go through, for good reason. Musk even tried to back out until he was forced to go through with it. If I recall correctly, things started getting much closer to the sale price once it became clear it was more likely to go through.