In the spirit of better investing and in celebration of the first annual Worldwide Invest Better Day coming up on Sept. 25, Motley Fool analysts will be answering user- and reader-submitted questions leading up to the big event. "Ask a Fool" anything, and we'll do our best to help you invest better.
In the following video, analyst Isaac Pino explains what it means when a company announces a "stock split," as well as the implications for investors when their shares are split. He also discusses why some companies choose to never announce stock splits, one example being Berkshire Hathaway, whose "A" stock currently trades at upwards of $100,000 a share as a result.
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The article Ask a Fool: What Is a Stock Split? originally appeared on Fool.com.
Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.