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Not all measurements are subject to Benford's law. For example, a list of people's heights isn't going to follow the distribution. You can't just arbitrarily take values and expect them to fit into this mold.

Basically, Benford's Law works where the values are an open-ended count of something. When it's a measurement within a bounded domain, all bets are off.



And to tie this back into the financial domain, company stock prices are also not open-ended but a bounded domain. Below $1 gets you delisted from the exchanges; above $500 or so starts to impact the stock's liquidity.* Companies make stock splits to stay within that range intentionally, departing from Benford's law. And it follows that any other numbers tied to the stock price - say the value of 100,000 options - will also depart from Benford's law. The effect doesn't necessarily imply chicanery or wrongdoing. (It does imply manipulation but that is not necessarily evil, and there may be many layers of indirection between the manipulation and observed numbers)

*(of course some companies like Berkshire Hathaway are famously okay with that.)


>>a list of people's heights isn't going to follow the distribution.

Try centimeters.


Benford's law is base independant.


Empirically speaking though, those numbers do follow Benford's Law, unlike measurements of people's heights.




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