4 ms·

A $4 share price is comparable to other company share prices relative to market capitalisation. eg. Alphabet at 950B ~ $720 per share. Perhaps the surprising t

• Cshelton 11y ago
  Price per share is irrelevant. Going from 2 to $4 is that same 50 to 100. Typically however, companies like to keep their stock price higher as it seems more attractive and a low share price seems less valuable than I.e. $100/share. Market cap is completely separate, all depending on number of outstanding shares.
  • adventured 11y ago
    There are more important practical reasons for slightly higher share prices than appearances. A lot of major brokers (eg Fidelity, Scottrade, TradeKing, TD Ameritrade) won't allow any margin on stock prices below $2 or $3, and often brokers adjust the margin requirements based on price brackets (eg $5 to $3, X% capital requirement; sub $3, no margin allowed). That can cause a margin crunch on investors if the stock falls below $3.
    • MagnumOpus 11y ago
      There are also important practical reasons for low share prices - there are high fees and commissions for trading shares in lots smaller than 100. This makes stocks at low prices attractive for small investors, unlike the Berkshire of old with a price of 100k...
      • GFK_of_xmaspast 11y ago
        Why would AMD (or any major company) care about saving small investors transaction fees like that?
      • sokoloff 11y ago
        Odd lot surcharges have (almost?) entirely vanished.