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 Video: What is a Stock Split?
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| New Century Bancorp is a bank holding company. Through its subsidiary, New Century Bank (the Bank), Co. is engaged in general commercial and retail banking in southeastern North Carolina. The Bank provides a range of commercial, consumer, and mortgage lending products. The deposit services provided by the Bank include small business and personal checking, savings accounts and certificates of deposit. Co.'s investment portfolio consists of U.S. government agency securities, U.S. government sponsored entities agency securities, mortgage-backed securities and bank-qualified municipal securities. As of Dec 31 2012, Co. had total assets of $585.5 million and total deposits of $498.6 million. According to our NCBC split history records, NCBC has had 6 splits. | |
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NCBC (NCBC) has 6 splits in our NCBC split history database. The first split for NCBC took place on January 03, 1992. This was a 3 for 2
split, meaning for each 2
shares of NCBC owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. NCBC's second split took place on November 01, 1993. This was a 3 for 2
split, meaning for each 2
shares of NCBC owned pre-split, the shareholder now owned 3 shares. For example, a 1500 share position pre-split, became a 2250 share position following the split. NCBC's third split took place on May 19, 1997. This was a 2 for 1
split, meaning for each share of NCBC owned pre-split, the shareholder now owned 2 shares. For example, a 2250 share position pre-split, became a 4500 share position following the split. NCBC's 4th split took place on July 02, 1998. This was a 2 for 1
split, meaning for each share of NCBC owned pre-split, the shareholder now owned 2 shares. For example, a 4500 share position pre-split, became a 9000 share position following the split. NCBC's 5th split took place on August 11, 2005. This was a 3 for 2 split, meaning for each 2 shares of NCBC owned pre-split, the shareholder now owned 3 shares. For example, a 9000 share position pre-split, became a 13500 share position following the split. NCBC's 6th split took place on November 24, 2006. This was a 6 for 5 split, meaning for each 5 shares of NCBC owned pre-split, the shareholder now owned 6 shares. For example, a 13500 share position pre-split, became a 16200 share position following the split.
When a company such as NCBC splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.
Looking at the NCBC split history from start to finish, an original position size of 1000 shares would have turned into 16200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into NCBC shares, starting with a $10,000 purchase of NCBC, presented on a split-history-adjusted basis factoring in the complete NCBC split history.
Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
04/22/2014 |
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| End date: |
07/25/2014 |
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| Start price/share: |
$7.22 |
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| End price/share: |
$6.76 |
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| Dividends collected/share: |
$0.00 |
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| Total return: |
-6.37% |
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| Annualized Gain: |
-24.74% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$9,363.00 |
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| Years: |
0.26 |
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| Date |
Ratio |
| 01/03/1992 | 3 for 2
| | 11/01/1993 | 3 for 2
| | 05/19/1997 | 2 for 1
| | 07/02/1998 | 2 for 1
| | 08/11/2005 | 3 for 2 | | 11/24/2006 | 6 for 5 |
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