Sunday, April 22, 2018

How does the market disambiguate market wide effects vs individual stock valuation effects?

For example, if large sections of the market dip, this may be a reflection of market certainty, not a reflection of the value of an individual company like Apple or Ford. In this case, individual stocks will be undervalued, not because there is new information indicating a loss of value but because of an external reason suppressing the market.

How is this taken into account?



Submitted April 22, 2018 at 02:06PM by Palmsiepoo https://ift.tt/2K71x3M

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