Why is Google’s stock priced at 129$ and Microsoft at 322$ for example?
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Why is Google’s stock priced at 129$ and Microsoft at 322$ for example?
Stocks are made up of shares, which are portions of a company. Normally at the start of going public, the company offers shares at a set price per share.
From this point onwards, the prices go up and down depending on market buying pressure versus selling pressure.
In addition to being influenced by the initial price offering (IPO), stock splits are where a share is split into multiple shares, and the fractions become the new share price.
So history of stock splits and other factors within an individual company, make direct share prices with another less valid.
For comparing similar companies, people are very unlikely to consider direct share price comparison – and instead will likely compare companies based on:
* Proportional/ percentage movement in price
* Market cap (the company’s overall value i.e. share price multiplied by number of shares
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