Facebook Stock Splits 5-to-1 For More Affordable Investing

 It's good to see any company's bottom line increasing , and when a company does a 5 to1 share split, it means that it's doing very well. I feel that what they have accomplished is that they have preserved a market for the smaller investors to be able to buy these shares. After all, lots of people would like to have a piece of Facebook
    . . . June


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Facebook announces 5-to-1 shares split
Financials | ZDNet UK: "NEWS

Facebook formally sliced up its stock in a 5-for-1 division on Friday — a move designed to keep the price of individual shares lower as demand for the privately owned social-networking site on secondary markets has been driving it upward.

"The reason is that the stock has risen significantly since our last split, and this allows us to bring it into a similar price range as other private companies," Facebook spokesman Jonny Thaw told ZDNet UK's sister site CNET News. "It also allows us to give everyone larger stock unit grants without increasing dilution for shareholders."

It is the third time in Facebook's six-year history that the company has undergone a split of its shares, following a 4-for-1 division in July 2006 and another in October 2007. Splitting stock is not an uncommon practice, considering that when individual share prices grow very high it can limit their growth. A lower share price can make the stock more accessible to small-time investors.

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