Final answer:
A low stock price refers to a stock trading at a lower price per share, while a cheap stock is undervalued based on its intrinsic value.
Step-by-step explanation:
A low stock price and a cheap stock are similar in that they both refer to stocks that have a lower price compared to other stocks in the market. However, there is a difference between the two.
A low stock price simply means that the stock is trading at a lower price per share. This can be influenced by factors such as market conditions, company performance, and investor sentiment. For example, a stock with a price of $10 per share can be considered low if most other stocks are trading at higher prices.
On the other hand, a cheap stock refers to a stock that is undervalued based on its intrinsic value. Intrinsic value is the true worth of a company, which is determined by factors such as its assets, earnings, and potential for growth. A stock can be considered cheap if its current market price is lower than its intrinsic value.