Hi Mara, no, I haven't heard any rumors of a JNJ stock split."..the last time they split the commentary included the point that JNJ doesn't like stock to go much higher than $60."I don't think $60 is correct. I've held JNJ eleven years now. During that time the stock has split only once, and that was as the share price was approaching the one hundred dollar level.If my memory serves me correctly, the split was announced when the share price was in the upper 80s, and actually took place at just over $100.Years ago splits were a big deal because dropping the share price meant more little guys could get in at a lower cost, but in todays stockmarket with much lower commissions, a lower share price isn't quite as important.Today, the buying and selling created by a split about cancel each other out. You'll see some buying because the share price is lower, but you'll get some selling because some smaller investors are happy with a specific number of shares and once a split is announced, they see this as an opportunity to rebalance their portfolio allocations. They might sell off 50% of their position after a 2-for-1 split for example.In a stock like JNJ, with such a large percentage of institutional ownership, the amount of any effect in this regard is usually small.So, the announcement of a split doesn't do any harm, but in the long run, isn't likely to add anything much of significant value to the share price. You get more shares, but each one is worth less. For this reason, splits are generally viewed as a non-event by many long-term shareholders.
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