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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: Mili21 who wrote (22133)	11/12/2025 12:09:45 PM
From: cajman1	6 Recommendations Recommended By Das Kapital Markbn Marmalade Smart_Asset Steve Mac and 1 more member Respond to of 24100

I'll give you a few reasons why I like stock splits: 1) It makes it easier to buy shares though this is not much of a factor in today's world. Way back when, I wanted to buy Berkshire but the price was around $10k and I didn't have that much to invest. Turns out, I would've made a fortune if I could've bought it, ie, had Berkshire split the stock, I could have afforded it. 2) Getting more shares allows for more option possibilities. I occasionally write covered calls and having more shares increases the flexibility. In some cases where I may not have 100 shares, a split will put my share total over 100. 3) Stock splits are generally seen as positive forward guidance from the company as it is seen as vote of confidence.

To: Mili21 who wrote (22133)	11/12/2025 1:55:34 PM
From: Das Kapital	1 Recommendation Recommended By Tam3262 Respond to of 24100

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).