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Rational investors don't sell shares punitively, although if they believe that they'll continue to be diluted at a rapid pace, that could account for some of th
by tg3 13y ago
Rational investors don't sell shares punitively, although if they believe that they'll continue to be diluted at a rapid pace, that could account for some of the downward valuation.
- djloche 13y agoThe old saying is: the market can stay irrational longer than you can stay solvent.
- marcosdumay 13y agoIt's not punitive, and is perfectly rational. You buy some share in a company that you think will grow a lot; you discover that this company is not well managed, so it probably won't grow that much; you sell your stock, before the non-growth is realized.