As a professor, I tend to be quite wedded to the idea of efficient markets that has played such a large role in academic research. But every so often something comes along to remind that assets do get mispriced. Below is one of the funniest examples.
U.S. regulators temporarily suspended trading in Crypto Co. over concerns that the stock is being manipulated after it surged more than 2,700 percent this month, making paper billionaires out of top executives. Crypto is the product of a reverse merger with a company that made water and radio-wave resistant sports bra pockets, according to a November filing. Last week it issued stock to accredited investors at $7, a 97 percent discount to the prior day’s closing price.