If hedge funds think the right price of a stock is $100, they will buy or sell if the price deviates from $100 and this will push the price back to $100. At best your purchase will move the price away from $100 for a few milliseconds. The stock’s value will be determined by what hedge funds think is its discounted present value, and your purchasing the stock doesn’t impact this. When you buy wheat you increase the demand for wheat and this should raise wheat’s price as wheat, like Bitcoin, is not purely a financial asset.
If hedge funds think the right price of a stock is $100, they will buy or sell if the price deviates from $100 and this will push the price back to $100. At best your purchase will move the price away from $100 for a few milliseconds. The stock’s value will be determined by what hedge funds think is its discounted present value, and your purchasing the stock doesn’t impact this. When you buy wheat you increase the demand for wheat and this should raise wheat’s price as wheat, like Bitcoin, is not purely a financial asset.
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