a management will often decide to split their stock when the share price, in their opinion, is to high to attract the kind of shareholder they desire.

splitting a stock does not increase or decrease the value of the company, their are still the same ownership rights conferred to the same owners as before. now they have 2 shares instead of 1 for instance.

berkshire hathaway management does not want to encourage traders in their security so they do not split the shares. less shares usually equals less shareholders which equals less paperwork and investor relations work. berkshire trades over $115,000 per share or thereabouts.

most companies in the u. s. market split when the share price reaches anywhere from $30 to $100+, depending on such variable as:

the management, the market conditions, and the firms prospects.

no hard and fast rule however. canadian securities tend to split at a little lower prices.

their are minor pros and minor cons to splitting, but studies have shown owning a lot of splitting shares does not react much diff then other firms in the same business then the overall market for a similiar time frame.

regards,

jeff