PairGain Technologies Will Split Its High-Flying Stock

In a bid to increase the affordability of its high-flying stock, PairGain Technologies Inc. said it will double the number of shares available for trading with a 2-for-1 stock split effective today.

The Tustin company, which makes and markets equipment to improve voice, video and data transmission over conventional copper telephone lines, has been a market darling for months. Its stock, which dropped $5 Friday to $115.25 a share, has nearly tripled since the beginning of the year and is up almost tenfold from the beginning of 1995.

A stock split typically lowers the value of each share by increasing the total number of shares. Lowering the value of high-priced stock makes it more accessible to small investors.

After the split, to be handled as a 100% stock dividend payable to shareholders who owned company stock as of Friday, there will be approximately 31 million shares of PairGain common stock on the market. The company’s shares are traded on the Nasdaq market.