On the Nasdaq stocks that are under $5 are considered to be "penny stocks".  Above $5, more institutions that could/would not invest before can do so now. That can contribute to greater share price rises and more importantly maintainable higher share prices due to share demand from growing institutional support and reputable analyst coverage. Of course in a free market share prices can dive terribly if the insitutions no longer wish to support their horse in the race. With that said, it is typical as history shows for promising Nasdaq stocks with credible and positive momentum that they rapidly move to $100 share prices. leaving those not really in the know scratching their heads.

Even before serious revenue, the institutions familiar with the industries they specialize are able to quantify data on what a potential pipeline of customers and market share can do for the stocks they commit too. At $100, it then becomes critical for such stocks to get to the next level with quantifiable "show me" stats, increasing development pipeline of customers and of course, compelling revenue projections and the beginning of supply orders to support the generous market cap that the institutional part of the market has place their bet (trust) in.

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