Re:Vanguard Is Growing Faster Than Everybody Else Combined
by TheCoelacanth on Wednesday April 19, 2017 @05:06PM
(#14151774)
> I'm less clear on how one arbitrages difference between the prices passives are investing at and a "true" price.
If the market is systematically over-pricing companies, you create a private company and then take it public to cash in on the inflated prices. If the market is systematically under-pricing companies, you buy up a company for less than it is worth, and then run it as a private company for profit-making purposes.
If the market is systematically over-pricing companies, you create a private company and then take it public to cash in on the inflated prices. If the market is systematically under-pricing companies, you buy up a company for less than it is worth, and then run it as a private company for profit-making purposes.