Best Answer
stock talkrisk is only half the equation. If stock is vlaued according to the cash flows investors expect a company to generate at some point in the future.

That's the nuts and bolts of stock trading.

To know which stock will trade the highest, you'll have to know where the market as a whole thinks risk is the lowest, but return the highest.

But it really isn't that simple. sometimes, the riskiest stocks are those whose prospects for growth are out of this world.

The take away here is to think in temrs of valuation, not price.

Most people rather buy 100 shares of a $5 stock instead of 5 shares of a $100 stock.

If the underlying fundamentals of the $100 stock/company are better, go for the latter.

In fact, it may be that the $100 stock is CHEAP -- how can this be, you ask?

simple: if the $100 stock/company is expected to grow its earnings 20% year to year but trades at only 10 x future earnings (profits), you may actually have a DISCOUNT on your hands.

books I recommend:

1. how to make money in stocks - William o'neill2. how to read a financial report - john tracy3. morningstar's guide to successful stock investing4. fire your stock analyst - Henry domash

User Avatar

Wiki User

โˆ™ 2011-09-12 21:44:13
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: If you are looking at many companies with equal risks which ones will have the highest stock prices?
Write your answer...
Related questions

Assume you are looking at many companies with equal risk; which ones will have the highest stock prices?

Given companies with equal risk, those companies with expectations of high return will have higher common stock prices relative to those companies with poor expectations.

What are the pros and cons of buying bank stocks?

In the current market Bank stocks at companies such as Morgan Stanley, Bank of America, JP Morgan and Wells Fargo are all trading at historically low prices. When these stock prices normalize an investment at these low prices can equal big profits. The cons to this would be the same as any stock--namely the uncertainty is a con. However, bank stock prices will rise so buying stocks in of of the aforementioned banks could equal large returns in the future.

What planet has the highest average surface temperature?

Venus has the highest average surface temperature, which is equal to 464C.

Is 1.260 equal 1.206?

No, you can tell by looking at them.

Is 45 equal to 54?

Nope 45 is not equal to 54. This is not what i am looking for i hope i find it thanks

In the wheel of retailing process new retailer offer improved serives at equal prices?

B:new retailers offers lower prices by reducing services.

What are the three highest federal courts?

The highest US federal court is the US Supreme Court. Below it, the 11 Circuit Courts of Appeal are next highest. All 11 are equal.

What is the highest number roman numerial c can make?

C is equal to 100

How much in a Coke in Russia?

Just the normal range. Prices are mostly equal also.

Is univirsal tickets cheaper than Disney tickets?

No Universal traditionally raises prices when Disney does keeping there prices quite equal to that of Walt Disney World.

Prefix for equal?

The prefix meaning equal is spelled "equi-." Some words that start with this prefix are equilateral, equivalence, and equidistant.

What was Thomas Jefferson looking for?

for freedom and rights that would be equal

What year AD has all the letters that have used in Roman Numerals and in order from highest to lowest?

In order from highest to lowest, you would have the number MDCLXVI, which is equal to 1666.

What are you looking for in a potential partner?

In a word smartness, more than or equal to you

Is five and negative five equal or different?

It depends, if you are looking for the absolute value then it would be equal. It is different if it is negative and positive.

1000volts is equal to how many watts?

1000 volts is equal to zero watts. The formula you are looking for is W = A x V.

What is the highest gas prices have ever been in the US?

The highest absolute average gas price came in July 2008, at $4.12 per gallon, according to the US Dept of Energy gas survey. This also coincides with the highest price in real terms (i.e. inflation adjusted), it being equal to $4.28 per gallon in 2011 dollars. Look at the links below to see data on gas pricing (both in real and inflation-adjusted terms)

Who is the highest paid soccer player right now?

c.ronaldo and david beckham equal joint

Who was the highest ranking US Admiral?

Admiral of the Navy George Dewey. (Equal to 6 stars.)

What is the degree of term x2 plus 4?

The degree is equal to the highest exponent on a variable, which is 2.

If sum of three consecutive multiples of 7 is equal to 252 Find the highest number?


Is there a lowest number if all the numbers in a set are equal?

If all the names are equal e.g. 7, then the lowest number = the highest number = the mean etc. = 7.

What medal of honor is the most highest award given by the US government?

The Medal of Honor is the highest award of the US MILITARY. The highest awards (equal) given by the US GOVERNMENT are the Presidential Medal of Freedom, and the Congressional Gold Medal.

What does 5 equal?

I don't know, try looking it up on a maths website.

What US companies pay women equal pay for equal work?

All of them It's a serious question. What are the names of companies that, as part of internal policy, will pay both men and women the same (or atleast within the same range) salary for the same job.