We don’t know what the value/quantity curve looks like, or how it will change if demand changes.
This is untrue. Order book data is available for the right price (and although it doesn’t capture all capital flow, sophisticated algorithms can infer the full curves with high accuracy). For what it’s worth, many finance firms view the market price as basically noise and use order book curves as the “real” price input. Most contracts that depend on equity value will calculate it by VWAP over the last 30 or 90 trading days, which is a much better estimate of true value.
This is untrue. Order book data is available for the right price (and although it doesn’t capture all capital flow, sophisticated algorithms can infer the full curves with high accuracy). For what it’s worth, many finance firms view the market price as basically noise and use order book curves as the “real” price input. Most contracts that depend on equity value will calculate it by VWAP over the last 30 or 90 trading days, which is a much better estimate of true value.