I think we can all agree that stock prices are determined by supply and demand for that stock. It's from this notion that stems my question, and I wanted to make sure I was right.
This would mean that a company's stock price is solely determined by what the public THINKS those companies assets are, rather than what their assets actually are. For example, let's say that a company messed up and somehow destroyed the companies future and the value of their assets, but they were somehow able to keep it a secret, then for that time being, there would be no movement in stock price, as the supply and demand for those stocks would not change. As soon as it would be released in the press, however, people would start fearing that the price of the stock will go down, and every shareholder will want to sell, no one will want to buy, and so the stock price will go down.
I'm wondering if I'm entirely right or if some of the nuances of my knowledge are to be corrected. Thanks to anyone that can help.