 |
 Video: What is a Stock Split?
|
|
|
| American Software develops, markets, and supports activities of a range of computer business application software products. Co. has three operating segments: Supply Chain Management, which provides collaborative supply chain solutions to streamline and optimize the production, distribution and management of products between trading partners; Information Technology (IT) Consulting, which consists of an IT staffing and consulting services firm; and Other, which consists of American Software Enterprise Resource Planning, which provides purchasing and materials management, customer order processing, financial, e-commerce, and other manufacturing solutions. According to our AMSWA split history records, American Software has had 4 splits. | |
|
American Software (AMSWA) has 4 splits in our AMSWA split history database. The first split for AMSWA took place on April 16, 1985. This was a 3 for 2
split, meaning for each 2
shares of AMSWA 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. AMSWA's second split took place on April 01, 1987. This was a 3 for 2
split, meaning for each 2
shares of AMSWA 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. AMSWA's third split took place on May 08, 1989. This was a 3 for 2
split, meaning for each 2
shares of AMSWA owned pre-split, the shareholder now owned 3 shares. For example, a 2250 share position pre-split, became a 3375 share position following the split. AMSWA's 4th split took place on July 24, 1990. This was a 3 for 2
split, meaning for each 2
shares of AMSWA owned pre-split, the shareholder now owned 3 shares. For example, a 3375 share position pre-split, became a 5062.5 share position following the split.
When a company such as American Software 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 AMSWA split history from start to finish, an original position size of 1000 shares would have turned into 5062.5 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into American Software shares, starting with a $10,000 purchase of AMSWA, presented on a split-history-adjusted basis factoring in the complete AMSWA split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
06/24/2009 |
|
| End date: |
06/21/2019 |
|
| Start price/share: |
$4.91 |
|
| End price/share: |
$14.66 |
|
| Starting shares: |
2,036.66 |
|
| Ending shares: |
3,202.70 |
|
| Dividends reinvested/share: |
$3.98 |
|
| Total return: |
369.52% |
|
| Average Annual Total Return: |
16.73% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$46,950.56 |
|
| Years: |
10.00 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
06/24/2009 |
|
| End date: |
06/21/2019 |
|
| Start price/share: |
$4.91 |
|
| End price/share: |
$14.66 |
|
| Dividends collected/share: |
$3.98 |
|
| Total return: |
279.63% |
|
| Average Annual Total Return: |
14.28% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$37,979.00 |
|
| Years: |
10.00 |
|
|
|
| Date |
Ratio |
| 04/16/1985 | 3 for 2
| | 04/01/1987 | 3 for 2
| | 05/08/1989 | 3 for 2
| | 07/24/1990 | 3 for 2
|
|
|
