The Difficulty of Pricing New Economy Stocks (Report)

Here is an old report drudged up for a reread some twenty years later. - Chad

With the emergence around 1997 of a distinction between “new economy” stocks and the so-called “old economy” stocks, it has become necessary to take an additional dimension into account when monitoring stock markets.

Specifically, pricing new economy stocks raises three types of problems :

Definitions and measures are not straightforward;

The usual analytical frameworks show limits; 

The behaviour of investors and issuers is new.

BIS: https://www.bis.org/publ/cgfs19bdf4.pdf