This is true in theory but not in practice. For example, NASDAQ OUCH, which is one of the most popular protocols for entering stock orders in the world, has a maximum price of 199,999. A stock trading at one dollar can go up by a factor of 1000, but only once. See <a href="http:&#x2F;&#x2F;www.nasdaqtrader.com&#x2F;content&#x2F;technicalsupport&#x2F;specifications&#x2F;TradingProducts&#x2F;OUCH4.2.pdf" rel="nofollow">http:&#x2F;&#x2F;www.nasdaqtrader.com&#x2F;content&#x2F;technicalsupport&#x2F;specifi...</a><p>A more subtle ceiling is why companies split their stock: a huge price per share distorts the market. Imagine if Costco were the only place you could buy butter, but they sell it in five-pound packs. Individuals might not buy any.