Why are MOST stocks cheap enough that most people can invest at least some money?

Question

Why don't the rich just make shares control more of the company so poorer people can't invest in it like Berkshire hathway?? Why aren't most stocks this expensive?

Answer 1

WHAT ? Why don't the rich just make the shares so expensive that poor people can't afford to buy them ?  Do you REALLY think the rich...give a c**p about what the poor can or cannot afford?  Don't you think it would be better for the rich if everyone WOULD  invest ... especially in an  IRA ? You know ...less people for the government to take care of.?..lower taxes ?  Geeeez...don't fall for the lib/dem BS that rich, or middle-class, or Wall street are out to stomp little people or some such nonsense... they are only out to  " take care of their own".. and while they're at it they pay about 90% of ALL the income tax that our wasteful gov collects.  It is NOT the fault of some guy (on a yacht or in a private jet) that  some other person has nothing... it's just that everything costs money...some people understand that...and some people don't. Some people pay for insurance, for medical care, for education... some people buy 56 inch T.V s and lottery tickets. ( ...and get their medical care and education from the people that DON'T squander their money.)

... and sad, sad, sad to say ...when you GIVE somebody something for nothing...they only expect MORE next week/ month/ year.

Answer 2

It is very difficult to control the price of a stock. the price of a share is determined by the amount of  people who are interested in buying it. If there are more people interested in buying a stock, demand is what pushes the price up and obviously the performance of the company. The share price of Berkshire Hathaway are i believe one of the most expensive   stock on any stock exchange.This is simply because warren Buffett(whose nick name is the sage of Omaha) hardly puts a foot wrong  with his companies.The returns that his shareholders enjoy is truly the envy of all. In that case it is difficult to control the stock price so that poorer people can buy the stock, and anyhow that is illegal.I am a big admirer of Warren Buffett and his philosophies.

Answer 3

Many companies keep splitting their stock when it gets so high and trading volume slows.  That keeps the price down where more people can afford it.  And it creates demand and increases trading volume.  Then they often buy back stock when it gets cheap, which keeps it from getting diluted.  Buffett has never split Berkshire.

Answer 4

Corporations don't 'give a rip' who buys their stock, just THAT THEY DO.  They sell their stock to the rich, the poor, the short, the tall, the overweight, the underweight, etc.

As long as you have the money, they have the stock.

Answer 5

The Oracle of Omaha doesn't believe in splitting stock.  That's the simple answer.

Most publicly traded companies split their shares so that there is a greater float (shares out there to trade).  This makes the shares more liquid (tradeable).