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by Eddy_Viscosity2 1 day ago
How does 'the market' properly set prices if everyone blindly buying the same things without any discriminators?
2 comments

What do you mean by everyone?

Btw, keep in mind that index funds are really keen to lend out their shares to short sellers.

depends entirely on your definition of price. But generally speaking, the idea that the stock market is efficient at allocating resources is just not true. It's an ok-ish thing to say for a 101 course (i.e a first introduction) on the topic, but it very quickly becomes clear how inefficient things can be in practice