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?
Yes, that makes sense. But isn't it possible for companies to manipulate their share prices artificially to create a false sense of value?
Yes, that's true. Some companies engage in activities like stock buybacks, insider trading, or misleading financial reporting to manipulate the market and drive up their stock prices. However, these practices are illegal and can lead to serious consequences for the company and its executives if caught. It's important for investors to do their due diligence and thoroughly research a company before investing in its shares.