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>So market cap is based on exaggerations and lies. Market cap is defined by whatever stock buyers decide to justify their purchase. If people keep buying the s
by FirmwareBurner 2y ago
>So market cap is based on exaggerations and lies.
Market cap is defined by whatever stock buyers decide to justify their purchase. If people keep buying the stock to get it to the moon because of whatever hype, what else matters?
- croes 2y agoit distorts the market to the detriment of honest manufacturers ... and we would probably have been spared Trump
- FirmwareBurner 2y agoSo the government should stop people buying certain stocks they want, based on some criteria?
- deleted 2y ago[deleted]
- daveguy 2y agoCongratulations. That may be the most ridiculous strawman non-sequiteur I have ever read on HN. Truly reddit worthy.
- FirmwareBurner 2y ago- sent from my iPhone
- acdha 2y agoFalse claims would be good criteria. Tesla’s stock price massively benefited from “Full Self-Driving” hype over a decade of unkept promises; having penalties for misleading investors would help a lot of industries.
- FirmwareBurner 2y ago>False claims would be good criteria. OK, what false claims did crypto make to justify its valuation? What false claims did tulips make? What if a large part of the stock market is more people gambling or FOMO herd mentality rather than calculated choices? You don't have to justify stock valuations the same way you can't rationalize peoples' behavior and that's what stock values reflect. Just stay way from high risk meme stocks. >Tesla’s stock price massively benefited You mean the investors have benefited. Which is why they invested in Tesla stock to begin with.
- acdha 2y agoCryptocurrencies aren’t regulated securities. They arguably should be but this is a weird distraction from the question of whether someone who did make false claims in a regulated context should be held accountable.
- FirmwareBurner 2y agoSure, but my point was how do you plan on stopping people from speculating on assets?
- Tadpole9181 2y agoSeriously, now we're arguing that it should be legal to defraud investors by lying to them about the state of the business?
- AnimalMuppet 2y agoYou don't stop the buyer from buying on speculation about what the business might become. The buyer can do whatever they want based on whatever rationalization they want. You stop the seller from pumping up the stock price based on lies.