One of the most common beginner misconceptions in the stock market is this:
“If a stock is priced at ₹3,000, it must be more expensive/valued than a stock at ₹300.”
Sounds logical, right? But it’s not true.
Here’s why:
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Stock price alone tells you nothing about value.
A company can split its shares and bring the price from ₹3,000 down to ₹300, without changing its actual value. -
What really matters is market capitalization (market cap).
Market cap = Share price × Number of shares.
Example:-
Company A: ₹3,000 per share × 1 lakh shares = ₹3,000 crore market cap
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Company B: ₹300 per share × 1 crore shares = ₹3,000 crore market cap
Both companies are equally valued in the market, even though their stock prices look totally different.
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Think of it like pizza slices.
Whether you cut a pizza into 4 slices or 8 slices, the pizza is still the same size. The number of slices (or share price) doesn’t change the overall pizza (or company value).
So the next time you see a stock with a “high” price, don’t assume it’s expensive or more valued. Look deeper into:
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Market cap
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Earnings and profits
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Growth potential
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Industry position
Your turn:
When you first started learning about investing/trading, what was one “myth” or misconception you believed?
Drop it in the comments 
, let’s bust them together!