Description: Stock splits don’t change the value of a company. But a lower share price for Warren Buffett’s firm (and other triple-digit stocks) could attract more investors.
Source: CNNMoney.com
Date: 11/06/2009
Link:Â http://money.cnn.com/2009/11/06/markets/thebuzz/index.htm?postversion=2009110616
Questions for discussion:
- What are the reasons offered for creating stock splits?Â
- What do you think motivated the decision to create a stock split of this magnitude at Berkshire Hathaway? Explain your answer.
- How might Buffett`s decision to split the stock be related to the acquisition of the Burlington Northern Santa Fe railroad?
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