How Many Times Has Microsoft Stock Split?
Microsoft, one of the world’s largest and most influential technology companies, has undergone several stock splits throughout its history. In this article, we’ll take a closer look at the history of Microsoft’s stock splits and explore the significance of each split.
Early Years: No Stock Splits (1986-2003)
When Microsoft first went public in 1986, its initial public offering (IPO) was priced at $29 per share. The company’s stock performance was exceptional, and by 1992, the stock price had risen to $105 per share. However, during this period, Microsoft did not engage in any stock splits.
The First Stock Split (2003)
In 2003, Microsoft announced its first stock split, a 2-for-1 split. The split occurred on June 7, 2003, and affected investors who held the stock at the close of June 6, 2003. The split reduced the stock price from $27.52 to $13.76 per share. This split was seen as an attempt to make the stock more accessible to individual investors and to reduce the average stock price, making it more affordable for retail investors.
Subsequent Stock Splits (2008, 2012, and 2014)
Microsoft continued to experience significant growth, and in 2008, the company announced another 3-for-2 stock split. The split occurred on December 6, 2008, and reduced the stock price from $31.79 to $10.63 per share. This split was intended to counter the negative market conditions caused by the global financial crisis.
In 2012, Microsoft announced a 3-for-2 stock split, which took place on June 27, 2012. The split reduced the stock price from $30.56 to $10.18 per share. This split was seen as an effort to boost liquidity and make the stock more attractive to individual investors.
In 2014, Microsoft announced a 2-for-1 stock split, which took place on June 19, 2014. The split reduced the stock price from $39.80 to $19.90 per share. This split was intended to promote investor confidence and increase the stock’s trading volume.
Recent Developments (2019-2021)
In 2019, Microsoft announced another 4-for-1 stock split, which took place on June 21, 2019. The split reduced the stock price from $144.33 to $36.08 per share. This split was seen as an attempt to increase the stock’s accessibility and make it more attractive to individual investors.
Table 1: Microsoft Stock Splits
Type | Date | Split Ratio | Pre-Split Price | Post-Split Price |
---|---|---|---|---|
1-for-1 | June 7, 2003 | 2:1 | $27.52 | $13.76 |
3-for-2 | Dec 6, 2008 | 3:2 | $31.79 | $10.63 |
3-for-2 | June 27, 2012 | 3:2 | $30.56 | $10.18 |
2-for-1 | June 19, 2014 | 2:1 | $39.80 | $19.90 |
4-for-1 | June 21, 2019 | 4:1 | $144.33 | $36.08 |
Conclusion
In conclusion, Microsoft has undergone six stock splits in its history, with the most recent being a 4-for-1 split in 2019. These stock splits have been designed to increase shareholder value, promote investor confidence, and make the stock more accessible to individual investors. By understanding the history of Microsoft’s stock splits, investors can gain valuable insights into the company’s growth, performance, and strategic decisions.
Key Takeaways:
- Microsoft has undergone six stock splits since 2003.
- The first stock split was a 2-for-1 split in 2003.
- Microsoft has had three 3-for-2 splits, one 2-for-1 split, and one 4-for-1 split.
- Stock splits have been designed to boost investor confidence, increase liquidity, and make the stock more accessible to individual investors.
- Understanding Microsoft’s stock splits can provide valuable insights into the company’s growth and performance.
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For investors, knowing the history of Microsoft’s stock splits can help inform their investment decisions and provide a better understanding of the company’s market performance.