Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B), the holding company owned by billionaire Warren Buffett, announced Friday that it will split the company's Class B shares, according to Associated Press.
The stock split, which will happen next Thursday, will be part of its plan to buy Burlington Northern Santa Fe Corp. (NYSE: BNI).
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The 50-for-1 stock split, which shareholders will vote on Wednesday, will increase the liquidity of Berkshire's stock, which is one of the most expensive stocks in the U.S. The move increases the chances for the company to be part of the S&P 500 index in the future.
Berkshire's Class A shares, which are not being split, closed at $97,500 Friday afternoon, down $1500, or 1.5 percent.
Class B shares, nicknamed "Baby Berkshires," were first issued in 1996 to meet demand from investors who couldn't afford Berkshire's original stock. They moved down $51, or 1.6 percent, to close at $3,247 on Friday.
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