Let me make it clearer and I apologize for the typographical errors and yes the old standard oil of New York was socony abbreviation for Standard OIl company of New York. And yes they will credit your shares fractional in your account but they will give you cash for any fractional share in your account when you take delivery or usually give you the chance to round up.But Im assuming no splits since standard oil was busted up under theodore Roosevelt and the stock split 15 times in 100 years once every six years. And I hope someone will correct me and do the history but with 15 splits each share would be worth about 1,622,400 (its the dollars that matter as someone wrote) yeah round up your fractional shares on that.Yes splits do make sense and yes, if warren Buffet split his stock more people would own it and you would have a larger market .How many people on this board buy at chevron stations because they own a miniscule piece of the company and we even get proxies to vote every year(fractional shares dont vote) ANd yes its complicated because of the merge with Texaco and factor in their splits very few people could afford one share of their stock either.this would be your world,glzack, very few shares outstanding and a price far beyond the price the public could afford. So that is why we have splits.
bobbi You are missing the point re Berkshire Hathaway Series A stock. Warren Buffett is not interested in making the BH Series A stock available to the common man. He created the Series B stock for the "common folk." The series B stock has significantly reduced voting rights but allows one to own @ 1/30th of an A series share. Neither A or B shares have ever split or paid dividends. All earnings are plowed back into the company or held for future investments.
There are actually two separate arguments going on here. One is whether it is better for a stock like CVX to sell for $50 a share or $3000 a share. The other is whether a split that drops the price from 100 to 50 makes the stock price go up afterwards. I am one of those who thinks a split is not a bad thing if it keeps a stock out of the 3 digit range, but that the recent split has little impact on the current value of the stock. Oil price, profits, and Wall Street emotion has a much greater impact on the day to day price.
This split discussion is goofy. Look, nobody is saying that a stock should not split even if it is a million dollars a share. At some point, there probably really is a reason to split, price actually could reduce liquidity and prevent people and funds from balancing their portfolios.
That price is not $100, it's not $200. In today's world, with price per transaction regardless of lot size, it is probably somewhere north of $1000 where people would be forced to overlook the value because of price per share.
I don't know what the threshold is, but people putting a thousand dollars into our stock are NOT a big part of our shareholder base (excluding perhaps employees who get shares through the company).
Any boost a stock gets from a split is psychological and temporary.