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Your right to see that, under most analysis, doubling the number of pieces of the pie doesn't vhange the amount of the total, just that each piece is half the size it was. The owner of the stock has double the number of shares, each half the value they were, but the total value of the shares is unchanged. However, stock values have some market preference features that also effect price. The ability to attract more investors at a stock share price that is in a range that makes investors feel compfortable, generally over $25 and below $50, is a common comfort level. Perhaps, some investors feel better about owning a larger number of shares because it makes them feel more substantial. Also, reflecting general rising market conditions, it may be easier for a share price to change by small incriments, which on a lesser value is a greater percentage. This added marketablitity can have the effect of strengthening share price.

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18y ago

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