A stock’s price by itself says almost nothing about the size of a company.
Let’s consider two companies:
$A trades at $500 per share and has 10 million shares.
$B trades at $50, but it has 1 billion shares.
At first glance, it seems like $A is “more expensive.” But market capitalization shows the opposite:
$A → $5B
$B → $50B
That’s why for $AAPLВ, $NVDAВ, or any other bStock, I first look not at the token’s price itself, but at what portion of the business is represented by one share.
Price is the cost of one unit.
Market capitalization is the value of the entire company.
That’s why comparing companies only by the price of a single token is almost always a bad idea.
What do you usually look at first: the share price or the market cap?
#bStocksCIS @BinanceCIS
Let’s consider two companies:
$A trades at $500 per share and has 10 million shares.
$B trades at $50, but it has 1 billion shares.
At first glance, it seems like $A is “more expensive.” But market capitalization shows the opposite:
$A → $5B
$B → $50B
That’s why for $AAPLВ, $NVDAВ, or any other bStock, I first look not at the token’s price itself, but at what portion of the business is represented by one share.
Price is the cost of one unit.
Market capitalization is the value of the entire company.
That’s why comparing companies only by the price of a single token is almost always a bad idea.
What do you usually look at first: the share price or the market cap?
#bStocksCIS @BinanceCIS