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Berkshire Hathaway

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12y ago

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Why does a company do a stock split?

Usually because the directors of the company feel that the current price per share will seem expensive to investors. Splitting the stock doesn't change the market capitalization of the company, but it can make a stock that felt expensive at $100 per share seem cheaper at $50 per share, for example. Not all companies do stock splits. Berkshire Hathaway is famous for not splitting its stock (for the longest time), as is the Washington Post.


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