Stock Market Revamp
While talking of stock market, I keep wondering, what does the price of a stock indicate? Does it indicate health of the organisation or it indicates what stock traders want others to believe is the health of the organisation. Stock traders with lot of funds available can manage to make the stock market behave the way they want others to see it. They have the power either to raise the stock price by creating demand or make a fall in the stock price by setting up high selling spree, irrespective of the actual health of the organisation. This becomes misleading for investors who gets carried away with the flow of the market and can end up making losses. Is there a way to address it? What looks to me is the problem lies in the option to bid a price for a stock. Since people have option to bid and they have funds, they can either take a price upwards or fall the price by pushing higher volumes of stock in the market. We hear that investors do technical analysis like candle...