If the true value of an IPO is for a company to raise money to invest, and it can be mutually beneficial to the company and the investors, then market price is a driver of intrinsic value.
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Replying to @LAForeverHall
I think that would be its market value(price). Its intrinsic value would be whatever the investors/speculators reckon is worth - a whole lot more than what they’re betting on.
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Replying to @DangInvestor
If intrinsic value is whatever others reckon it's worth, there's nothing intrinsic about it though?
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Replying to @LAForeverHall
True. Hence Fisher recommend investor staying away from promotional companies. Its value is whatever the market managed to get away with... on hopes and prayers.
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Well that may make sense. Do think it applies beyond just promotional companies. As in intrinsic value doesn't even really exist in the strictest definition of "intrinsic."
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