What Is Price Per Share (PPS)?

By Kristi Waterworth – Updated Jun 17, 2025 at 12:21 AM

Key Points

Price per share reflects cost to buy one stock share; market cap indicates total value.
Stock splits reduce price per share to attract investors; reverse splits increase it.
Factors like buying trends, financial health, and economic reports influence stock prices.

If you’re an investor, you’ve certainly come across the concept of price per share. Everything you buy has a cost, but understanding what influences the cost of a stock can help make you a better investor.

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A price tag with three dollar symbols on it. — Image source: The Motley Fool

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Federal Reserve

The Federal Reserve, often referred to as “the Fed,” is the central bank of the United States.

For example, the Job Openings and Labor Turnover Survey (JOLTS) report is often in the news. This indicator of the health of the job market can influence the Federal Reserve’s willingness to raise interest rates, which can make investors very nervous -- nervous enough to pull out of stocks that they love and are otherwise sound, and move their money to more sure things, like bonds, which inevitably will drop the price of those stocks.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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