shares

We all look at stock market share prices and wonder what they mean. Sometimes, when we see a stock that we know is a large and powerful company and compare its price to a smaller company, we are surprised by the result. How can a juggernaut like Starbucks or Walmart cost less than a local utility or another much smaller company? The key to understanding this mystery is: Share prices are not correlated with company prices.

We all look at stock market share prices and wonder what they mean. Sometimes, when we see a stock that we know is a large and powerful company and compare its price to a smaller company, we are surprised by the result. How can a juggernaut like Starbucks or Walmart cost less than a local utility or another much smaller company? The key to understanding this mystery is: Share prices are not correlated with company prices.