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 http://www.nasdaqtrader.com/content/technicalsupport/specifi...

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.