A common mistake new investors make is assuming that a stock’s price defines how “cheap” or “expensive” it is. In reality, a stock that trades at $10 can be expensive, but a stock that trades at $100 might be cheap — since valuations define a stock’s actual value.
Nonetheless, some investors prefer buying stocks with lower price tags, so they can buy them in “even lots” of 100 shares that are easier to track. For example, an investor who buys 100 shares of a $20 stock will make $1,000 if the stock hits $30.
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