Q: I would like your opinion on why it seems companies don’t seem to split their shares when values exceed a threshold amount, say $100.00 a share, as much as they did in the past. If they split, it would make it much easier for small investors, like myself, to afford good quality stocks that have become too expensive. Can you explain why it seems that stocks very rarely split these days?

A: When a company splits its shares, it is simply cutting itself up into a different number of pieces, without changing its fundamental value. It simply wants its stock to trade in a price-per-share range that seems reasonable to investors.

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