Year: 2002
Type: book-chapter
Abstract: What caused the rise and fall of tech stocks?I argue that a mechanism much like the transactions demand for money drove many stock prices above the ``fundamental value'' they would have had in a frictionless market.I start with the Palm/3Com microcosm and then look at tech stocks in general.High prices are associated with high volume, high volatility, low supply of shares, wide dispersion of opinion, and restrictions on long-term short selling.I review competing theories, and only the convenience yield view makes all these connections.
Source: The MIT Press eBooks
DOI: 10.3386/w8987
Author: John Cochrane
Institutions: Hoover Institution, National Bureau of Economic Research
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2125192094