Hedge Fund Question:
You are being interviewed by Ackman while the CNBC TV scrolls in the background. Suddenly at trader screams that Valeant is getting hit–THERE ARE more sellers than buyers! Ugly.
A technical analyst runs into the office yelling that he accidently read the chart upside down–Valeant is a SELL!
Ackman turns to you with a worried expression and asks you to confirm or deny the trader’s statement. What do you say? You will be thrown from the 20th floor if you get this one wrong.
A SERIOUS QUESTION:
Is there one price or two prices at any one time in the marketplace? A transaction occurs at one price but what determines which of the two prices at any one time?
