Why does some stock price divide by 100?

[hin]

I have only just started learning investing in stocks but i wonder why some company stocks are divided by 100

For example, current market price of Easyjet is about 920 GBP but if I put 1 in the quantity share box, it will result as 9.20 GBP per share.

However, other companies are as normal (market price of tesla is about 680 USD and it's 680 USD per share)

can someone explain why to me please

[CharlotteIG]

On 01/07/2021 at 16:36, hin said:

I have only just started learning investing in stocks but i wonder why some company stocks are divided by 100

For example, current market price of Easyjet is about 920 GBP but if I put 1 in the quantity share box, it will result as 9.20 GBP per share.

However, other companies are as normal (market price of tesla is about 680 USD and it's 680 USD per share)

can someone explain why to me please

Hey Hin, thanks for your first post.

In the underlying market UK and South African shares trade in pence. 

For example, when Easy Jet displays a price of 920, their share price is at £9.20. 

US shares and all others trade in dollars. So if Tesla's display price is 680, it's trading at $680. 

 

However, on Spread betting when you trade £1 per point it's equivalent to: 

Easy Jet, £1 per point is equivalent to 100 shares 

Tesla, $1 per point is equivalent to 100 shares. 

If you were trading £1 per point it would be equivalent to trading 100 shares x GBPUSD exchange rate. 

 

If you need clarification on anything else or have any other questions let me know. Either quote my response or sent me a notification by putting @CharlotteIG

All the best