MasterCard (MA 1.23%) 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 (BRK.A -0.29%) so expensive that they're out of reach for most retail investors at around $175,000 each. But he recently split Berkshire Hathaway's (BRK.B -0.10%) "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.
