Kraig Biocraft Laboratories Inc (KBLB)

[appleman]

I'll give it a shot....

The goal is often three-fold:
1. Increase liquidity (more shares available makes it easier for smaller investors to get on board).

2. Keep the stock in a certain dollar price range.

3. Send a signal to the markets that the company believes the stock will go up. A few companies do it so that their holders will have a few odd-lot shares to sell off in lieu of a dividend.

While these splits have a lot of hype, they do not create real value. They are essentially a zero sum game. A cooking example might help. If you own a pie and split it into 10 pieces, you still own a pie. If you split it into 20 pieces (i.e., a 2:1 split of the 10 piece pie), you still own a pie. The pie didn't get bigger. To make the pie bigger, you have to add something else to it. Splitting the pie into more pieces means there are more pieces to go around and it makes it easier for someone to buy a smaller piece of pie or makes it easier for people to share their pie with others. You still have the same pie.