Hundred-Dollar Stocks Double as U.S. CEOs Dismiss Splits
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Stock splits are losing their allure with American executives amid one of the broadest rallies ever, sending the number of shares trading above $100 to a record and showing the rising dominance of institutions in equity markets.
Gains of 20 percent or more pushed Boeing Co. and Amgen Inc. past $100 in 2013, joining 64 companies in the Standard & Poor’s 500 Index above the threshold, twice the level in 2010, according to data compiled by Bloomberg. Ten companies have split their stock this year, compared with 42 annually since 1996, data from S&P show, helping send the average share price to $65.96 last quarter, the highest on record.