BRK is an unusual case where they offer both A and B, wherein B is retail-accessible. BRK.A mostly exists for bragging rights at the shareholder meetings / getting closer to a celebrity a lot of people deify.
For other businesses, stock splits can increase investment/price since it makes that stock more accessible to retail investors and more importantly their huge pile of retirement savings. For example automatic investment plans that can buy whole shares of a company each month (via salary redirected savings) are much more popular than sitting on cash for up to months to buy a single share (and that is harder to automate/brokers don't support it).
Fractional Shares should solve this issue, but many 401Ks simply don't support them, different brokers have a patchwork of what can/cannot be done with fractional shares (e.g. market orders only), and there's also questions about voting power/stock splits/broker transfers/legal rights/etc.
If fractional shares were offered not at the broker level but at the exchange level with identical [proportional] power/legal rights/access/etc to regular shares none of this would matter, but they don't at all. So we've got a system where share price is both meaningless mathematically but also somehow an impediment to an entire investment class.
Right, my point was poorly articulated. I know why most companies split, I'm just not sure what incentives BRK to do this now. Do you think their cap is negatively effected by lack of retail access? They are a weird case.
For other businesses, stock splits can increase investment/price since it makes that stock more accessible to retail investors and more importantly their huge pile of retirement savings. For example automatic investment plans that can buy whole shares of a company each month (via salary redirected savings) are much more popular than sitting on cash for up to months to buy a single share (and that is harder to automate/brokers don't support it).
Fractional Shares should solve this issue, but many 401Ks simply don't support them, different brokers have a patchwork of what can/cannot be done with fractional shares (e.g. market orders only), and there's also questions about voting power/stock splits/broker transfers/legal rights/etc.
If fractional shares were offered not at the broker level but at the exchange level with identical [proportional] power/legal rights/access/etc to regular shares none of this would matter, but they don't at all. So we've got a system where share price is both meaningless mathematically but also somehow an impediment to an entire investment class.