Posted in:

Most Expensive Stock Analyzed By Traders Union Experts

© by Shutterstock

Stocks are extremely useful and well-liked financial instruments: even the most inexperienced traders can understand how to use them, but they can be very profitable nonetheless. Stocks are usually very cheap since they represent a tiny fraction of a company’s value, but you can find extremely expensive stocks as well. In this Traders Union article, we explain how stocks work and tell you a little about the top 3 most expensive shares in the world.

How stocks work

Many companies are fragmented into tiny units of ownership called shares. You can buy them and be entitled to a proportional part of that company’s assets and profits. Stock is a security that proves your ownership of several shares of a company. For example, if some company has 200 shares of stock in free circulation and you have 50 of them, you own 25% of its total assets and can expect to receive an appropriate fraction of its profits as dividends.

Why some stocks are more expensive

Basically, stock prices show whether a company is considered successful and promising by investors, and it’s driven by common market demand and supply. The more popular and well-liked a company is, the more its shares will grow. However, you must remember that the price of each share also depends on the number of shares, so a market cap is a more suitable characteristic when you want to compare two different corporations. Anyway, let’s look at the top 3 most expensive stock options in the world.

  1. NEXT

NEXT is a British clothing and footwear retailer that dominates the national market and has significant presence all across the world: it has about 700 stores around Europe, Asia, and the Middle East. The company’s market cap reaches $10.74 billion, and each of its shares costs more than $6,800.

  1. Lindt and Sprüngli AG

Founded back in 1845, Lindt is a Swiss confectionery corporation with 12 factories and more than 400 retail shops around the world. Its main office is located in Kilchberg, Switzerland. The average price of its shares exceeds $10,000, and the market cap of the company is about $26 billion.

  1. Berkshire Hathaway Inc.

Berkshire Hathaway is one of the most well-known holding companies. With legendary Warren Buffett as its CEO, this company mostly operates in the insurance, transportation, and energy industry. It has the most expensive shares in the USA and the entire world: they cost about $470,000.