Why do some companies (like this company) have such a huge per share price?
Questions
Why would they do this, I can't imagine what type of liquidty issues they may have,
I know stocks like Berkshire (where stocks are kept high to dissuade short selling, excessive voltailty and what not) But this stock is nearly 5x as large as they are, what type of people are doing these trades? (Company owners? Fund managers? are they even disclosed?)
the stock in question is an Israel Oil Company
Paz Oil Company Ltd
PER SHARE PRICE OF ,000
(https://www.google.com/finance?q=pzol&ei=9GfJU7iIBcquqAH4jYHACw)
(1)1 Comments
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Simple answer is because the stocks don't split. Most stocks would have a similar high price per share if they didn't split occasionally.
Why don't they split?
A better way to ask this is probably, why DO most stocks split? The standard answer is that it gives the appearance that stocks are "cheap" again and encourages investors to buy them. Some people, Warren Buffett (of Berkshire Hathaway) don't want any part of these shenanigans and refuse to split their stocks. Buffett also has commented that he thinks splitting a stock also adds unnecessary volatility.
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