People value securities based on the subjective preferences in the same way that value any economic good.
See how, for you, every determination of value results from your own subjective judgment…
A dollar cannot represent the value for an item of less value than a dollar
Before I move on to describe market exchanges in a bit more depth I would like to summarize the previous comments on value—in part because I encountered a bit of delay since my last post. Understanding value provides a foundation for understanding all other economic concepts. In order to distribute resources effectively and efficiently the … Continue reading Value: Summary