MasterCard (NYSE: MA ) 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 (NYSE: BRK-A ) so expensive that they're out of reach for most retail investors at around $175,000 each. But he recently split Berkshire Hathaway's (NYSE: BRK-B ) "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.
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