Proponents of the efficient market hypothesis hold that stock prices reflect everything that is publicly known about a company, meaning that the greed and fear of buyers and sellers causes the prices of individual stocks to more or less reflect their fair value, relative to the prices of other stocks. One bit of evidence against this theory is that the market capitalization (the number of shares times the price per share, meaning what the market values the entire company at) of CityBank of Lynnwood, Washington (its ticker symbol is CTBK), at $5 million, exceeds that of Cowlitz Bancorporation (CWLZ), of Longview, Washington at only $3 million.
Why is this strange? CityBank was seized by the regulators on April 16. It's out of business. Cowlitz, on the other hand, continues to make loans and accept deposits.