Fewer companies are splitting stocks

The number of companies splitting their stocks has been dropping in recent years due to fewer direct purchases by individual investors, the bear market of the early 2000s and its uneven recovery, according to The Wall Street Journal.
Less than 40 companies listed on the Standard & Poor’s 500 stock index have split their stocks since 2001, compared to an average of 59 splits dating back to 1980.
Last year saw 33 such announcements, compared to 114 in 1986.
Nike Inc. and Sealed Air Corp. became the most recent companies to announce a split.
Beaverton, Ore.-based Nike announced a 2-for-1 split of its stock after markets closed on Feb. 15.
The athletic-footwear maker noted that its shares have appreciated more than 70% during the past five years.
Elmwood Park, N.J.-based Sealed Air announced a 2-for-1 split on Feb. 16.
Institutional investors held 66.5% of U.S. companies’ outstanding shares in 2005, representing $12.1 trillion, compared to 48.7% in 1995, accounting for $4.1 trillion, according to data from the Securities Industry and Financial Markets Association.
U.S. households last held the majority of outstanding equities in 1995, accounting for $4.3 trillion. That number has since climbed to $6.09 trillion in 2005.