Lateral and Parallel thinking in Raji's blog

The wonderful world infront of my eyes...

Tuesday, April 12, 2005

Bonus shares

Regarding the bonus shares or stock split, what Raji said was true as to why companies go for a stock split. But some companies like Berkshire Hathaway (Warren Buffet's) dont go for a stock split because they want their share holders to self-select themselves. Basically they only want people who have lot of money and who can hold on to their shares without constantly trading for small profits. So, thats also an interesting view I guess.

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