4 ms·
> so the current stock price is mostly irrelevant to the shares that aren't moving. If it moves enough, shares that aren't moving might become shares that are
by PessimalDecimal 11mo ago
> so the current stock price is mostly irrelevant to the shares that aren't moving.
If it moves enough, shares that aren't moving might become shares that are though. Unless a company's stock is all held by Die Hard True Believers who will HODL through the apocalypse and beyond, the market price can matter.
We'd also have to run the same argument on the upside too. Does the current stock price matter to those who aren't selling when it goes 2x in a year?
- lapcat 11mo agoWhat apocalypse, exactly? The stock market has eventually recovered from every "crash." Occasionally a big company crashes and never recovers, e.g., Lehman Brothers, but I wouldn't expect that to happen to Amazon, Meta, Microsoft, or Oracle. I didn't say that stock price is totally irrelevant, but if you're investing for the long term, short-term fluctuations mostly shouldn't change your strategy. In any case, the headline is inaccurate. Unsold stock losing market value is not the same as stock sold off.