Adding to this post [1] on the information/statistical equilibrium picture of the stock market, I should note that the ratio $M/B$ is (one version of) "Tobin's Q", making $Q$ proportional to the stock price $p$ (or aggregate industry stock price $\Sigma_{i \in I} \; p_{i}$):
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Stocks and k-states, part III
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Adding to this post [1] on the information/statistical equilibrium picture of the stock market, I should note that the ratio $M/B$ is (one version of) "Tobin's Q", making $Q$ proportional to the stock price $p$ (or aggregate industry stock price $\Sigma_{i \in I} \; p_{i}$):