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What the author is arguing is that the current price exactly at this instant takes into account all the views of the market participants as expressed by orders (which would be correct). Note that those views may change almost instantaneously generating orders thus causing price to change. An example is you have an expected future price of 10 and the current ...


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Mark has rightly pointed. You may think like this, If there is high probability price would go up in future(in very short period), lets say 90% then investors would continue to buy until they no longer expect price to increase with such a high probability. Or until this strategy of buying shares with high probability of going up is not profitable(excess ...


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well, the current share price reflects fair value. So you'd expect it to be close to its expected price, but slightly below because of risk aversion and discounting. If it was very far off its expectation, it would either be over or under valued and people would trade accordingly.



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