For question 2 — what stops it — the honest answer is nothing stops you saying it, and several things stop anyone believing it.
The checks are social and legal rather than mechanical:
- Who the buyer is. A valuation set by a friend is worthless as a signal precisely because they were not deciding on the merits. Investors ask who set the last price before they ask what it was.
- How much was bought. A 0.0001% trade tells you almost nothing; somebody buying 20% has done real work on whether the price is sane, because they cannot walk away cheaply.
- What the money bought. Whether it came with control, a board seat, liquidation preferences. A price paid for a slice with strong protections is not the same price as one paid for plain shares — and headline valuations routinely ignore this.
That last one is why a reported valuation can be substantially fictional even between real parties.