By Yen Yee
Given a $1,000 investment capital, would you go with the option of purchasing 100 shares with company A (at $10 per share), or 5 shares with company B (at $125 per share)?
The majority of investors would choose the shares at company A due to the fact that the share prices are lower. Many of these investors would also think that the $125 shares of company B are too risky for their liking.
If you are one of those investors that agrees with this reasoning you may be in for a surprise.
Share price alone does not provide any information necessary for making an investing decision.
If you take the time to conduct the necessary research you may find out that the more ‘expensive’ stocks such as the $125 share of company B may be more affordable than the $10 share of company A for a few reasons.