"1) a collection of arbitrary rules invented by humans, 2) probability distributions over the ability to exchange certain assets at different points in time, 3) a giant optimization program."
That's a pretty good and succinct way of explaining the function of public markets. Their whole purpose is optimizing capital allocation by translating disparate assets across time into a single common metric.
That's a pretty good and succinct way of explaining the function of public markets. Their whole purpose is optimizing capital allocation by translating disparate assets across time into a single common metric.