Does a Stock's Share Price Matter?
MasterCard is doing a 10-for-1 split of its stock, which will effectively lower its stock price from $800 per share to $80 per share, making it cheaper for investors. But is a lower stock price really cheaper for investors or an illusion of value?
Warren Buffett has kept "A" shares of Berkshire Hathaway so expensive that they're out of reach for most retail investors at around $175,000 each. But he recently split Berkshire Hathaway's "B" shares to make them a more affordable $116 per share.
In the video below, Erin Miller sits down with Fool contributor Travis Hoium so see why companies split shares and what a stock price really means.
Pick stocks that will make you rich
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
The article Does a Stock's Share Price Matter? originally appeared on Fool.com.Erin Miller owns shares of Berkshire Hathaway. Fool contributor Travis Hoium manages an account that owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway and MasterCard. The Motley Fool owns shares of Berkshire Hathaway and MasterCard. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.