The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to go through some company share price basics. If you’re just getting started with stock trading or starting to get into options trading or as many people probably in this space have been doing since they were little kids, you've obviously been watching share prices of companies. Apple is trading for X, Amazon is trading for Y, GE is trading for Z, whatever. It doesn’t matter what the company is, but we all know intrinsically that there's this company share price that’s attached to each company or ticker symbol as they trade and the problem is that most people don't really understand how this number is effectively derived and they get fooled by this absolute share price and they don't ever adjust necessarily for outstanding shares or shares that have been issued by the company and this can sometimes lead people into making decisions wrongly potentially just based on the absolute share price of a comp