Consider two companies that are identical except for their shareholder base. One companys shareholders comprise mostly noise

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Consider two companies that are identical except for their shareholder base. One company’s shareholders comprise mostly noise traders, with mechanical investors making up the remainder. The other’s shareholders are mainly fundamental investors, with a few mechanical investors. Discuss the possible implications of these differences in ownership for the two companies’ expected levels of share price and share price volatility.
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Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

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