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Originally Posted by Edward64
I am sure there is a legit strategy here but I don't understand Apple's 4-to-1 split. Supposedly up 5.8% or so after hours because of this.
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Splitting the stock makes it easier for small investors to buy in and then hopefully continue to push the price higher. It's much easier financially and mentally for an average person to buy a share at $100 than $400. I mean what regular person could afford a share in Berkshire Hathaway at $290k but if they had split the stock over and over again throughout time lots of us would buy in at $100 a share.