Historical stocks that have split

Posted: 02/09/2007--25/11/2008 || Rate this Article: 3 || Views|| Sign In || Register ||Hello Guest

For a lot of people, hearing about a stock split is a time to dream about what it would be like to own a particular stock. However, for the companies involved, a stock split can serve one or more very important purposes.

One reason that a company may wish to split its stock is cost. When a stock becomes too high, many investors are simply priced-out of the market. Issuing a split allows a company's stock whose price is high to become more affordable, and open it up to more potential buyers. Another reason that companies issue a stock split is for the news and publicity that surrounds splits. A company that wants to gain publicity and hype for its stock may issue a split so that the ensuing media frenzy will attract more buyers. A third reason for a company to issue a stock split is to create more liquidity for its stock because a split increases the number of outstanding shares that can be traded.

Whatever the particular reason, publicly traded companies have been issuing stocks splits dating back decades. Below are just a few examples of historical companies that have split their stock.

IBM's first stock split dates back to February 16, 1926, when the company issued a 3 for 1 stock split. There next stock split did not come until January, 1946.

On April 1st of that same year, Edison International, the energy company, issued a 4 for 1 stock split. The company has only had four stock splits in is hundred year history. They occurred 1926, 1962, 1984, and 1993.

Caterpillar actually issued two stock splits in 1926. The second split in December of that year was a 5 for 1 split.

Texaco issued is first stock split in 1928. In 1929, Chevon issued a stock split. In 2001, the companies would merge and become ChevronTexaco. The first split as the new company occurred in 2004.

Disney's first stock split came in 1956, and was a 2 for 1 split. The company has had seven stock splits in its history.

Ford Motor Company was first publicly traded in 1956. The company's first stock split came in 1962.

Texas Instruments' first stock split came in 1963 as 5 for 4 split.

PepsiCo's first split came in June of 1967, and has had 5 splits in its history.

Bristol-Myers Squibb has had nine splits in its history. The first came in 1945. During the 1990's, the company had two stock splits within a two-year period.

As the above examples show, many of the companies that are household names have issued stock splits throughout their histories to create publicity and interest investors in their stocks. Certain periods of high interest in the stock market have also been times of increased stocks splits. During the late 1920's when interest in the market was high, a lot of companies were fueling that interest by splitting their stock. During the late '90's, when interest was again high in the market, companies were splitting their stocks.

The next time that a company announces they are splitting their stock, you can think about the other famous companies that have done this, and the reasons that may be affecting the decision.