3 ms·
There is some intrinsic value in a stock, but since it is based on future unknown values it's impossible to know or predict. So yes, that makes it possible for
by thunky 3y ago
There is some intrinsic value in a stock, but since it is based on future unknown values it's impossible to know or predict.
So yes, that makes it possible for the price to become disconnected from any reasonable prediction.
- deleted 3y ago[deleted]
- slt2021 3y agothere is also a secondary market for options - where investors trade volatility, and use stock as instrument to trade volatility and express their view. if volatility is priced at a bargain, investors doesnt care much about the stock, as he will be hedging his delta exposure anyways by means of dynamic hedging/etc