tchannon

Seven Stocks That Trade Above One Thousand Dollars Per Share

It's the understanding of units of ownership. If you owned your own company in full, why would you want to break up your ownership into little pieces? These companies have management that act like owners, and in many cases, are still run by the family that founded the company 100 years+ ago.

So, say you start your own company providing a service and that is your livelihood. You rely on the money the company makes, not the price per share of your stock. Sure, perhaps the opportunity comes along to sell a piece of it or raise capital and issue new shares, but the reality is, as long as you are an owner, just keep it for yourself. Furthermore, even if I am ok with someone becoming a new owner, I want them to pay the full price and not be able to have a few crumbs. The exclusivity of ownership.

Stock price is important, yes, but I bet that if you talk to any of the management at any of the above companies, I bet the price per share on the stock market is probably the last thing on their mind. Additionally, Very conservative financial theory (commonly practiced by family owned companies, small regional banks with huge operating history) and historical data suggest that having a stock split is not really good or bad - so, since it is not bad, and not good, why do it?