Stock Split Watch: Is Broadcom Next?
Stock splits can make high-priced shares more accessible to ordinary investors. Accounting experts and textbooks call it a "neutral event." It has no real effect on the Stock's total market value or the value of shares in your portfolio.
Yet there's psychological value in a comfortably priced stock ticker, and auto-trading computer algorithms may execute trades based on specific prices and daily trading volumes.
So most companies with dramatic stock-price growth tend to perform stock splits from time to time. The exceptions to this rule end up with astronomical share prices over time.
Source Fool.com
