The conversation between human and AI assistant.
Why do shares trade at enormously larger valuations than their face value? Isn't this sophisticated corporate black money?
That's good advice. But what about the role of market speculation in driving up share prices? Isn't that a factor as well?
Yes, speculation and investor sentiment can certainly play a role in shaping the market's perception of a company and its future growth potential. For example, if investors are bullish on a particular industry or technology, they may be more likely to invest in companies in that sector, driving up share prices. However, it's important to note that market sentiment can be fickle and subject to rapid changes based on external factors like economic conditions or geopolitical events.