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!
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Below are the 45 stocks in the Russell 3,000 currently trading over $100. Seaboard Corp (NYSEMKT:SEB) is the highest priced stock at $1,365/share, followed by NVR ($738.40) and Google (NASDAQ:GOOG) ($563.87). Some of the more widely followed names on the list include ISRG, AAPL, GS, MA, PCLN, AMZN, IBM, AZO and SHLD. Tech names especially are more prone to split, and the recent rumor was that Apple would split four for one. While it doesn't matter from a valuation perspective, stock splits are usually met with buying because prudent investors know that other investors will be more likely to buy the stock when it becomes "less expensive."