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Is there an advantage to buying stocks that are currently at a "low" price?

Posted on 1/15/20 at 2:56 pm
Posted by Grassy1
Member since Oct 2009
6253 posts
Posted on 1/15/20 at 2:56 pm
Sorry if it's a dumb question. But all things being equal (or such), is there an advantage to buying 1000 shares of ABC company at 1.00 per share vs. buying 3 shares of XYZ company at $333.33 per share?

Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 1/15/20 at 2:57 pm to
quote:

But all things being equal (or such), is there an advantage to buying 1000 shares of ABC company at 1.00 per share vs. buying 3 shares of XYZ company at $333.33 per share?



nope...stock price is pretty irrelevant when assessing the actual value of a company
Posted by yatesdog38
in your head rent free
Member since Sep 2013
12737 posts
Posted on 1/15/20 at 3:02 pm to
Not really... The only situation here is a stock listed really low could get it kicked off an exchange which would reduce the price further and trade volume might shrink... Delisting is rarely good. Parameters are being less than 1 dollar for 30 days. A couple other things too.

In most situations it doesn't matter.

Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80772 posts
Posted on 1/15/20 at 3:03 pm to
Price of the stock means nothing when comparing to other companies since total number of shares outstanding will not be the same. PE ratio is a general metric when comparing apples to apples but even that has an asterisk by it because growth companies will be much different than multinational conglomerates
Posted by Mr Perfect
Member since Mar 2010
17836 posts
Posted on 1/15/20 at 3:13 pm to
well when you can buy fractional shares , that really doesn't matter my guy
Posted by AMS
Member since Apr 2016
6495 posts
Posted on 1/15/20 at 7:30 pm to
You might assume smaller value stocks would be traded more frequently and more expensive ones less frequently.

I’m pretty sure fewer people are trading BRK than Ford.
Posted by Knucklehead
Member since Oct 2018
295 posts
Posted on 1/16/20 at 7:00 pm to
No.
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