How high can a stock go before it makes sense to split?
Whats the all time record?I would assume the all time record would be Berkshire Hathaway (BRKA) It trades in the area of $140,000 a share and as far as I know it has never split.it depends on the company.. sometimes they want their stock to be low so most regular investors can afford them.A stock split has no impact on the market value of the firm or the value of the investor. It simply is a device to change the size of the share unit smaller or larger (reverse split) to make trading more convenient for potential new investors. I think its at the company's discretion whether or not they want to do a stock split and it depends on a number of factors such as the number of shares outstanding, the traded volume and the kind of investor targeted. You can compare the share price of blue chips trading on the NASDAQ to get an idea of what a tradeable share price can be.Its totally at the discretion of the company whether to split the stock.there is no answer for this, as the stock splitting is determined by the Board of Directors, and not the market.
Well, actually not directly. If the trading volume is getting low for a prolonged period of time, than the Board my be more inclined to split.
Starbucks split their stock at $60. Google is trading at $710, and hasn't split yet. In fact, Google may never split. So there is no specific protocol regarding a stock split.
Moreover, it doesn't really matter either, as a stock split does nothing to an investors portfolio. Its just a gimic to attract more investors.
hope this helped.
