The Scoop on Splits

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Many investors have questions about stock splits. Here are a few answers.

When do stocks split? There's no fast rule. Some companies split their stock at relatively low prices, such as $30, while others split after the price passes the $100 mark. Some rarely split and trade well into three digits -- such as the Washington Post Co. (NYSE: WPO). Superinvestor Warren Buffett's Berkshire Hathaway (NYSE: BRK.A, BRK.B) sports A-class shares approaching a price of $100,000 each. (Yes, you read that right. B-class shares are nearing only $3,000 each.) Stock might be split merely to increase the number of shares outstanding or perhaps to meet a stock exchange requirement.

Where can you find out about a company's recent stock splits? One good source is the horse's mouth. Call the company's investor relations department and ask. Here in cyberspace, drop by our Quotes and Research area, where you can look up a stock's price chart, and, in the "Upper Indicators" box, select "Show Splits" to see stock splits noted on the chart.

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Here are some more articles on stock splits:

• Stock Splits
• What Happened to Stock Splits?
• Sickly Sweet Stock Split
• A Reverse Split -- Ouch!