The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous during periods of market exuberance. The concept of “private market value” as an anchor to the proper valuation of a business can also be greatly skewed during ebullient times and should always be considered with a healthy degree of skepticism.
![The latest trade of a security creates a dangerous illusion that its The latest trade of a security creates a dangerous illusion that its Image](https://www.idlehearts.com/images/the-latest-trade-of-a-security-creates-a-dangerous-illusion-that-its.jpg?x85372)