3 ms·
The price of a stock doesn't matter. A company with 100'000 shares that are worth $100 isn't worth more than a company that has 10 million shares that are worth
by xorfish 6y ago
The price of a stock doesn't matter. A company with 100'000 shares that are worth $100 isn't worth more than a company that has 10 million shares that are worth $1.
- zaroth 6y agoWell technically dmix says worth not price which to me is more akin to market cap than price.
- simonebrunozzi 6y agoThat's also how I intended it.
- jfengel 6y agoBut I a dollar stock is more likely to triple than a $100 stock. As you say, it's the total market cap that matters in how much value a share is actually worth. But there is a floor to how much an individual share can be sold for before they de-list it entirely, resulting in a lot of volatility for very-low-priced stocks. When a company on the brink gets a bit of good news, it's easier for it to triple in value than a company with an existing, stable business. Such things can suddenly turn into big, quick wins for the people who were there before the news. (People investing after the news are pretty much just suckers, though market irrationality still lets them sell at a profit to even further suckers.)