Microsoft's Stock Split History: A Detailed Analysis
Nine Stock Splits since 1987
Microsoft Corporation (MSFT) has executed nine stock splits over the course of its history as a publicly traded company. The first split took place on September 21, 1987, and since then, the company has consistently split its stock to make it more accessible to a wider range of investors.
Impact on Investors
A stock split increases the number of shares outstanding while decreasing the price per share. This can potentially benefit investors by making it easier to purchase and sell shares, as well as by increasing the liquidity of the stock.
For example, if an investor purchased 100 shares of Microsoft stock before the September 21, 1987, split, they would have received an additional 100 shares as a result of the 2-for-1 split. These additional shares would have increased their potential for capital appreciation as the company grew.
Company Performance
Microsoft's stock split history is closely tied to its overall financial performance. The company has consistently split its stock during periods of growth and profitability, indicating that the splits have been used as a way to reward shareholders and attract new investors.
The most recent stock split occurred on February 18, 2003, and it was a 2-for-1 split. Since then, Microsoft's stock price has continued to climb, reaching an all-time high in June 2021.
In conclusion, Microsoft's stock split history has been a major factor in the company's success and has played a significant role in increasing shareholder value over time.
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