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Once again, the problem is determining a 'fair, economically justifiable valuation' that a majority can agree on... generally a definition of this is the curren
by joosters 11y ago
Once again, the problem is determining a 'fair, economically justifiable valuation' that a majority can agree on... generally a definition of this is the current stock price.
- simonh 11y agoNot at all. If the stock price is primarily driven by speculators buying the stock simply because it's price is going up and they intend to profit thereby, then the stock's value has become independent of the economics of the business. This is why I specificaly mentioned economic justifiability. Speculators of that kind have no interest in the actual business or it's economics or even it's justifiability, only the short term stock price.