Join 924 investors who get actionable, evidenced-based wealth management insights delivered directly to their inbox.
Subscribe

The Truth About Stock Prices

In the last few weeks, I’ve unpacked studies addressing both the nominal price illusion and the nominal price premium. So today I’ll answer a related question: Do nominal stock prices really matter?

Because the level of a company’s stock price is arbitrary—it can be manipulated, for example, by firms via adjustments in the number of shares outstanding—if markets were fully efficient, nominal stock prices should be randomly chosen by firms. However, until just recently, the average nominal price of U.S. stocks had remained around $30 over the last several decades.

Read the rest of the article on ETF.com.

 

We want to hear from you!

Montgomery

866.676.2701
info@jt-am.com
200 Commerce Street
Suite 300
Montgomery, AL 36104
Map

Dothan

334.793.7001
info@jt-am.com
304 Jamestown Boulevard
Dothan, AL 36301
Map

Receive Our Newsletter

Close