Question
Recently, Elon Musk stated he believed the Tesla company's stock was overvalued, and that the price should drop. In August both Tesla and Apple did
Recently, Elon Musk stated he believed the Tesla company's stock was overvalued, and that the price should drop. In August both Tesla and Apple did stock splits , so if you had one Apple stock at $400, you now have 2 stocks for $200 each. The value is the same, but the individual stock price is lower. This prompts more people to buy-in at the lower level and keeps the stock from plummeting due to over valuation.
Do you believe that a companys stock price reflects a companys value or success in (a) the marketplace, and (b) society? Why or why not?
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