Stock Markets Exposed
Which Stock is better. Stock with a higher face value or a stock with a lesser face value?
I mean which stock has greater value for investing?
Public Comments
- your bond is best! bout time you used it! http://www.youtube.com/watch?v=uCNHe1jIbNg
- Do you mean price? Those with higher price or those with lower price? Stocks really do not have a face value as such. Some have a par value which for all practical purposes is meaningless. The price of the stock taken as indication of goodness is in general not too meaningful. One can run statistical analyses of these things, but one needs to be very skeptical of the results. Stock under $5 a share in price 17% have a positive return over the last 52 weeks but also in that category 7% have a return of over 50%. Another way to put this is 83% lost money. Stocks between $5 and $10 a share 22% had a positive return during that period. But only 5% had a return of greater than 50%. 78% lost money. Stocks between $10 and $20 a share 24% had a positive return. Only 2% had a return of greater than 50%. 76% lost money. Stocks between $20 and $40 a share 18% had a positive return. 82% lost money. 2% had a return greater than 50%. Stocks between $40 and $80 a share 20% had a positive return. 80% lost money. 1% had a return greater than 50% Stocks between $80 and $160 a share 38% had a positive return 62% lost money. 1% had a return greater than 50%. In that price range though the population drops off significantly. There are only 84 stocks to choose from. From these statistics there are a couple of conclusions that might be drawn. The chance of loosing money is greater with less pricey stocks but not significantly so until you reach the $80 range. The probability of getting a 50% gain is greater with the less expensive stocks. Seven times greater with stocks selling at less than $5.00 a share as opposed to stocks selling at $80 a share.
