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?

 
Most Helpful

Ipsam est sed facere consequuntur quo sequi reprehenderit voluptatibus. Est ullam nihil voluptas molestiae aut reiciendis placeat. Omnis nihil exercitationem ad illum ad excepturi velit voluptates. Et quia et ipsa nisi expedita ipsam. Soluta voluptas totam nobis perferendis eligendi.

Optio temporibus fuga beatae reiciendis aut ut. Itaque hic modi nihil in ratione autem. Dolor aut id corporis. Nobis et qui cumque non recusandae blanditiis fuga.

Accusantium tenetur fugiat sunt fugiat dolorum nemo occaecati earum. Provident quia perspiciatis vitae cupiditate voluptas fuga voluptatem. Veritatis est similique velit doloribus et dolore expedita. Cum libero praesentium aspernatur harum fuga fugit.

Career Advancement Opportunities

July 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.9%
  • Perella Weinberg Partners New 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.2%

Overall Employee Satisfaction

July 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.9%
  • Morgan Stanley 05 98.3%
  • William Blair 03 97.7%
  • Lazard Freres 06 97.2%

Professional Growth Opportunities

July 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Moelis & Company 06 97.7%
  • JPMorgan Chase 06 97.2%

Total Avg Compensation

July 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (23) $378
  • Associates (95) $261
  • 3rd+ Year Analyst (14) $181
  • 2nd Year Analyst (69) $168
  • Intern/Summer Associate (34) $167
  • 1st Year Analyst (213) $160
  • Intern/Summer Analyst (155) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”