My sense is this security would be fine? Is there a big issue with this being a security?
In the sense that it would find a market-clearing price, it’s fine. But in the sense of its price movements being informative...well. Say the price of that security has just dropped by 10%.
Is the market reflecting that bad news about Google’s new AI model is likely to reflect poor long-term prospects? Is it indicating that increased regulatory scrutiny is likely to be bad for Google’s profitability?
I mean, I feel like random things affect the price of securities all the time. During early COVID random fiscal policy decisions had a much bigger effect on the stock price of companies than their actual competence. Similarly, COVID itself of course had huge effects.
I feel like it’s normal that when the stock price of a company moves, this often has little to do with the company, but can be chased back to kind of “random” other things. In this case, the stock price would go down, and it would be pretty easy to check whether that was because something related to the resolution criteria changed, or whether something “core” to the company changed.
In the sense that it would find a market-clearing price, it’s fine. But in the sense of its price movements being informative...well. Say the price of that security has just dropped by 10%.
Is the market reflecting that bad news about Google’s new AI model is likely to reflect poor long-term prospects? Is it indicating that increased regulatory scrutiny is likely to be bad for Google’s profitability?
Or is Sundar Pichai going bald?
I mean, I feel like random things affect the price of securities all the time. During early COVID random fiscal policy decisions had a much bigger effect on the stock price of companies than their actual competence. Similarly, COVID itself of course had huge effects.
I feel like it’s normal that when the stock price of a company moves, this often has little to do with the company, but can be chased back to kind of “random” other things. In this case, the stock price would go down, and it would be pretty easy to check whether that was because something related to the resolution criteria changed, or whether something “core” to the company changed.