Question
The GameStop (GME) episode, which culminated in January 2021, makes for an interesting case study in market efficiency. It seems clear from social media accounts
The GameStop (GME) episode, which culminated in January 2021, makes for an interesting case study in market efficiency. It seems clear from social media accounts that some investors were making mistakes when trading GME - that is, they were not buying because they thought that GME's price was lower than the net present value (NPV) of its future cash flows or selling because they considered its price to be above NPV. Are such mistakes sufficient to explain the apparent mispricing of GME in January 2021? Why or why not?
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Stock Market Investing For Beginners Your Step By Step Guide To Building Wealth And Passive Income Streams Using Proven Stock Market Strategies
Authors: Michael Ezeanaka
1st Edition
1096335387
