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Strategies & Market Trends : Young and Older Folk Portfolio
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To: Mili21 who wrote (22133)11/12/2025 1:55:34 PM
From: Das Kapital1 Recommendation

Recommended By
Tam3262

   of 23915
 
RE: What's the point in splitting the shares when company is buying back shares?

Well, ultimately it all depends on the company's policy and it appears that so far AFL finds it beneficial.

I think cagman1 provided a nice answer to your question. On my side I can add two extra reasons why stock splitting can be beneficial:

*Psychological appeal (investors may feel more comfortable buying a larger number of lower-priced shares than a single, high-priced share)

**Index inclusion & management (some stock indices, like the price-weighted Dow Jones Industrial Average, have specific price considerations for inclusion. A lower share price after a split can help a company meet these criteria or make it easier for mutual funds and ETFs to manage their portfolios. Liquidity may also play a role here since some indices require a certain level of trading volume).
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