diggers and drillers, page-6

Share price is all to do with human perception.

A share that cost 6 or 7c is often referred to as a penny dreadful. A share worth 60 or 70c has far more psycological appeal to traders and institutions.

In the same way a share trading at $200 is often seen as too expensive for retaqil investors and so a share split is often carried out to remove this perception and bring the price back to say $20 and attract more retail investors.