Stock Trend Evaluation: What It Is + Examples
For instance, in 2008, luxury sports car or truck manufacturer Porsche attempted to get majority control of Volkswagen. Investors knew that if Porsche had been to succeed, the industry cost of Volkswagen stock would fall in worth. Porsche then revealed it had secretly acquired 70 percent of Volkswagen through derivatives. Investors scrambled to purchase back borrowed shares of Volkswagen stock, producing a feedback loop. Say you believe Meta stock is overvalued at a price tag of $310 per share, and…