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Stock price isn't based on demand, so no that wouldn't work the way you think it would. These same stocks would be overvalued, with no fundamentals backing them
by lovethevoid 2y ago
Stock price isn't based on demand, so no that wouldn't work the way you think it would. These same stocks would be overvalued, with no fundamentals backing them as everyone wouldn't be buying the products/services to create those fundamentals.
- jncfhnb 2y agoStock price is 100% based on demand and nothing else (well aside from new issuances or splits). Demand is ideally a function of fundamentals. The stock price being overvalued is irrelevant if “everyone” is buying it. This is a hyperbolic example but it plays out in the valuation of the sp500 when legions of folks just dump into an index fund.