Stock Splits
know many might think this is a dumb question, but I’m going to ask it anyway: how do companies determine when it's time to do a stock split? I feel that some companies do it more often than others, while some never do it at all. For instance, the most recognizable company that has never done a stock split is Berkshire Hathaway, which is trading at $610,900.00.
Another example is one of my favorite stocks, NVR, which is trading at $7,574. Despite the recent craze of stock splits over the last few years, they haven't done the same. I understand that the board members of a company have to agree to a stock split, but what exactly do they consider before deciding to engage in one?
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