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Jim, companies split their stock, as you note, in order to make it easier for more people to buy shares. Some companies, however, do not believe in splitting their stock. When I bought Berkshire Hathaway for my daughter's account in 1981, it was selling at 295. It eventually went over 60,000 without splitting. Warren Buffett doesn't believe that splits are good because it creates more buying and selling activity. He prefers stockholders like my daughter, who is still hanging in there, except for two shares she sold for a down payment on a house. The more a stock trades below, say $50, the more volatile it is. So there's no guarantee the company will want to split, though it would be easier to do so this time, since additional shares have already been authorized by shareholders. Art |
