There are more important practical reasons for slightly higher share prices than appearances. A lot of major brokers (eg Fidelity, Scottrade, TradeKing, TD Ameritrade) won&#x27;t allow any margin on stock prices below $2 or $3, and often brokers adjust the margin requirements based on price brackets (eg $5 to $3, X% capital requirement; sub $3, no margin allowed). That can cause a margin crunch on investors if the stock falls below $3.