when does a share split? have any shares split recently?

Question

do you think google might split their shares?

Answer 1

Some of the strategies of stock spilt is to increase liquidty of the share. ie, so it is cheaper to buy. Also, When a share price gets too high, say $400, it is more difficult to rise to $440 (10%) than $220 (10% but after spilt).

Google is an unconventional company. I doubt they will spilt at all as they do not have any liquidity problem. In fact I suspect they may even go for reverse stock spilt as they do not need the major up and down swing of share price to distract them.

Answer 2

A share splits when the company decides that its share price is too high and it would be more attractive at a lower price.

Some shares like Berkshire Hathaway never split. Splitting does encourage more speculative buyers. I think google wants investors who are making a bet on the long term future of the company, so it is unlikely that they will split.

Share price is also becoming less important as it is easy to buy stocks in smaller amounts than the standard 100 share lot.

Answer 3

A stock split is also sometimes seen as a precursor of a good future...the thought being that they wouldn't have split the stock if they expected it to go down. Another, more sinister (albeit rare)reason is that some executives try to prop up a share price by splitting the stock. I also disagree that higher prices discourage speculators. I think Berkshire's turnover is due to the nature of its shareholders more than its share price. Go to one of their meetings, and you'll get it.

BH is one of a kind. My guess is that you'll see Google split at some point.

Answer 4

Shares are split for two reasons one is to create liquidity and the other is to comply with the economic redistribution prerogative. Lower the price higher the market participants. Higher the market participants better the redistribution of wealth.