Berkshire, Amazon, Alphabet, Tesla May Follow Apple in Stock Splitting To Expand Their Market Caps

Any chief finance executive (CFO) searches for ways to pour funds from external sources after using all possible means to increase the earnings. Taking debts may pose additional risks for financial stability. Issuing extra shares may cause ownership delusion which may lead to legal actions from shareholders.

How about splitting the stock? Stockholders may have 2 or 4 instead of 1 share by keeping the value of their capital. The stock splitting usually attracts investors who look for cheaper stocks. Yesterday’s expensive stock like Apple (AAPL) will be split 4 for 1 share on the 31st of August. This move could make Apple a $2 trillion company in history due to the rising demand for cheaper AAPL.

Other richest companies like Berkshire Hathaway (BRK-A), Amazon (AMZN), Alphabet (GOOG), Tesla (TSLA), and others may repeat the same strategy to attract more investors and increase their market caps which are already overvalued as compared to actual capitalizations in their balance sheets.