3 ms·
How does 'the market' properly set prices if everyone blindly buying the same things without any discriminators?
by Eddy_Viscosity2 3mo ago
How does 'the market' properly set prices if everyone blindly buying the same things without any discriminators?
- dgellow 3mo agodepends entirely on your definition of price. But generally speaking, the idea that the stock market is efficient at allocating resources is just not true. It's an ok-ish thing to say for a 101 course (i.e a first introduction) on the topic, but it very quickly becomes clear how inefficient things can be in practice
- eru 3mo agoCould you please elaborate?
- eru 3mo agoWhat do you mean by everyone? Btw, keep in mind that index funds are really keen to lend out their shares to short sellers.