I see news articles about stock prices going up or down due to investor confidence or trust. How can group-think affect a stock price that rapidly is the value of the company is largely unchanged?
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stock price is the price at which 0.1% of company stock was sold yesterday. People who buy and sell stocks daily are prone to hypes and group-think.
Company itself is not directly affected by stock price movements. If stock price is low for a while, somebody might think the company is actually undervalued, and buy it, and change the way it is run.
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