But that price does not adjust for two subsequent splits in the stock, one of them a reverse split.

A key question posed is "why should prices adjust slowly?"

The price of the good adjusts to balance supply (domestic plus imported) and demand.

According to them the prices of goods and services will adjust to the supply of gold.

In 1947, the price at the pump read 23 cents, but adjusted for inflation that was worth $1.49.

As this happens, inflation will fall and prices will adjust downward.

After another six to nine months, however, prices adjust.

In this example, the price of the right would adjust itself to $100 (ideally).

Here the dynamic process is that prices adjust until supply equals demand.

The risk in that strategy is that to make it work one must be able to maintain the short position until the prices adjust.