Hickey and Walters (Bespoke) submit:
While the dollar price of a stock has nothing to do with its valuation, lots of investors out there let price influence their investment decisions. Some investors stay away from high-priced stocks because "they're too expensive" and like to buy low priced stocks because "they're cheap." For some reason, buying 500 shares of a $2 stock seems more appealing to them than buying 5 shares of a $200 stock. For most investment purposes, this is foolish, but it happens. Below we highlight the number of stocks in the Russell 3,000 that are currently trading over $100/share and under $10/share. We also highlight what the numbers were on the day of the market's all-time high (10/9/07) and the day of the bear market low (3/9/09). As shown, there are currently 45 stocks in the Russell 3,000 trading over $100/share. There are 766 trading under $10/share. At the market's peak in 2007, there were 81 $100+ stocks and 340 stocks under $10. On the day of the bear market low, there were only 15 stocks trading over $100, and there were 1,519 trading under $10!Complete Story »