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  • Trading Because of Inefficiency

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    Pav Aujla
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    Inefficient markets create opportunities for traders to profit. When a stock's price differs from its intrinsic value due to irrational behavior by other investors, traders can purchase the stock at a discount and later sell it at a higher price that better reflects its true worth. By taking advantage of other investors' mistakes and irrational behavior, traders are able to generate profits in inefficient markets where mispricings exist.

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    Inefficient markets create opportunities for traders to profit. When a stock's price differs from its intrinsic value due to irrational behavior by other investors, traders can purchase the stock at a discount and later sell it at a higher price that better reflects its true worth. By taking advantage of other investors' mistakes and irrational behavior, traders are able to generate profits in inefficient markets where mispricings exist.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    25 views1 page

    Trading Because of Inefficiency

    Uploaded by

    Pav Aujla
    Inefficient markets create opportunities for traders to profit. When a stock's price differs from its intrinsic value due to irrational behavior by other investors, traders can purchase the stock at a discount and later sell it at a higher price that better reflects its true worth. By taking advantage of other investors' mistakes and irrational behavior, traders are able to generate profits in inefficient markets where mispricings exist.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Trading because of Inefficiency

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