Investment (1) : What is stock split?

Berkshire Hathaway most expensive stock price: 1 million MYR / share

- Target investors: millionaire

- Purpose : 

(1) Boost liquidity of shares 

(2) make share seems affordable to small investor

Let say Jason is holding 100 shares for Berkshire, it costs 100*1 million= 0.1 billion MYR

If  Berkshire Hathaway announced a stock split,  ' TWO FOR ONE '.

This means the number of shares increase, but the price per share decreases.

NOW Jason's shares will split into two groups, 

group(1): 50 shares, cost= 50 million MYR

group(2): 50 shares, cost= 50 million MYR

total cost = 0.1 billion MYR (nothing gain or lost)