Visa (V) is Preparing to Split its Stock

Not widely covered today, in a proxy statement overnight Visa (NYSE: V) proposed to amend its Certificate of Incorporation at its 2015 annual meeting of stockholder to facilitate stock splits.

According to the fling, "The proposed amendments are intended to provide Visa the ability to effect a future stock split of its Class A common stock in a manner that would preserve, following the stock split, the respective ownership percentages that the holders of Class A common stock, Class B common stock and Class C common stock had immediately prior to the stock split."

Answering "Why would a company want to do a stock split?" the company said: "Although reasons for doing a stock split will vary from company to company, in a typical scenario, a company will effect a stock split where that company has seen steady and/or consistent increases in its stock price and believes that a reduction in the stock price will help increase the marketability of its stock by making its shares more “affordable” for potential investors. For example, in a 2-for-1 stock split, a share price of $60 per share may be more likely to attract potential investors as compared to a more expensive share price of $120 per share."

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