Why do stock prices change dramatically in value within seconds after release of financial results? After all, it is impossible to analyze such a large amount of information in such a short time.

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Why do stock prices change dramatically in value within seconds after release of financial results? After all, it is impossible to analyze such a large amount of information in such a short time.

In: Economics

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Anonymous 0 Comments

A million people skimming the results and trading based on it, and then a million algorithms trading based on the pennies dropped by people because there are pricing models for derivatives and futures.

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