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Video: What is a Stock Split?
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Alcon AG is a Switzerland-based eye care company. Co. research, develop, manufacture, distribute and sell a full suite of eye care products within two key businesses: Surgical and Vision Care. Co.'s Surgical business is focused on ophthalmic products for cataract surgery, vitreoretinal surgery, refractive laser surgery and glaucoma surgery. The surgical portfolio includes implantables, consumables and surgical equipment required for these procedures and supports the end-to-end needs of the ophthalmic surgeon. According to our ALC split history records, Alcon has had 2 splits. | |
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Alcon (ALC) has 2 splits in our ALC split history database. The first split for ALC took place on March 17, 2009. This was a 1 for 5 reverse split, meaning for each 5 shares of ALC owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 200 share position following the split. ALC's second split took place on June 16, 2011. This was a 2 for 1 split, meaning for each share of ALC owned pre-split, the shareholder now owned 2 shares. For example, a 200 share position pre-split, became a 400 share position following the split.
When a company such as Alcon 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. When a company such as Alcon conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the ALC split history from start to finish, an original position size of 1000 shares would have turned into 400 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Alcon shares, starting with a $10,000 purchase of ALC, presented on a split-history-adjusted basis factoring in the complete ALC split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/10/2019 |
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End date: |
12/09/2024 |
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Start price/share: |
$57.30 |
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End price/share: |
$86.47 |
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Starting shares: |
174.52 |
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Ending shares: |
175.80 |
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Dividends reinvested/share: |
$0.55 |
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Total return: |
52.01% |
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Average Annual Total Return: |
7.66% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$15,198.05 |
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Years: |
5.67 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/10/2019 |
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End date: |
12/09/2024 |
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Start price/share: |
$57.30 |
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End price/share: |
$86.47 |
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Dividends collected/share: |
$0.55 |
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Total return: |
51.87% |
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Average Annual Total Return: |
7.65% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$15,190.04 |
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Years: |
5.67 |
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Date |
Ratio |
03/17/2009 | 1 for 5 | 06/16/2011 | 2 for 1 |
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