If a company's share price is getting so high that the company thinks it might inhibit some investors from buying stock, it should consider doing a stock split.

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Quizplus · Accepted Answer

A stock split is a common method used by companies to increase the number of shares outstanding without changing the total value of the shares. This can help make the shares more attractive to a wider range of investors by reducing the price per share, which may be seen as more affordable. This can also increase liquidity in the stock, as more shares are available for trading. Therefore, if a company's share price is getting too high, it may choose to do a stock split to make the shares more accessible to investors.

If a Company's Share Price Is Getting So High That