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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 at
by 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 agoThere 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 agoThere 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 agoWhy would AMD (or any major company) care about saving small investors transaction fees like that?
- sokoloff 11y agoOdd lot surcharges have (almost?) entirely vanished.