5 A split was an increase in the number of a firm’s outstanding shares that did not cause a change in the shareholders’ equity. A two-for-one split would entail a 50% reduction in the stock’s price at the time of the split. Company directors authorized stock splits to make the company’s shares affordable to a broader range of investors. 6 In 1996, Berkshire Hathaway issued Class B shares, which had an economic interest equal to 1/30th and a voting interest equal to 1/200th that of the firm’s Class A shares. 7 Berkshire Hathaway Inc., 2004 Annual Report, 1.