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A comment on Index Investing Makes Markets and Economies More Efficient (2016). Parent comment

Re:Index Investing Makes Markets and Economies More Efficien... by acdanger on Tuesday September 19, 2017 @02:08PM (#15287202)
That's not directly tied to their stock price though. Apple could suffer a corporate scandal tomorrow and their stock price could fall 20% and revenues could be largely unaffected.

I just don't follow the reasoning that stock price enables resource allocation.

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Re:Index Investing Makes Markets and Economies More Efficien... by bandrami on Tuesday September 19, 2017 @03:19PM (#15287949)
It doesn't; you're exactly right. It's something people who hold for value (i.e. baseball cards or tulips) rather than for income (i.e. dividends, or what people used to hold stocks for for centuries) tell themselves.
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