When it comes to stock investing, the share price is probably the most talked about factor. This isn’t surprising because, at the end of the day, the share price is the determining factor whether money is gained or lost. Furthermore, any entry into the stock market would require a certain capital amount which again, is determined by the share price.
So when first studying the share prices of a few companies, most people will be wondering why some shares are priced higher or lower than others. Let’s look no further than two widely known companies, Apple and Amazon. People often ask, hey why is one Amazon share selling at USD 3,500 and one Apple share is only going at USD 150? What do their share prices mean exactly? Does it mean that Apple is 20 times more undervalued than Amazon? Or is Amazon 20 times more expensive or more profitable than Apple?...