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Video: What is a Stock Split?
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BT is a holding company. Through its subsidiaries, Co. is engaged in providing customers with communications and connectivity services. Co. sells fixed-voice, broadband, mobile and TV to UK consumers, with a range of ancillary products and services such as handsets and insurance. For Co.'s UK and global business customers, Co.'s services range from phone and broadband to complex managed networks, IT services and cyber security. Co. also sells wholesale access products and services to UK communications providers. Co.'s retail brands include BT, EE, Plusnet and Openreach. According to our BT split history records, BT has had 1 split. | |
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![BT split history picture](/BT-split-history.png)
BT (BT) has 1 split in our BT split history database. The split for BT took place on December 08, 2015. This was a 2 for 1 split, meaning for each share of BT owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split.
When a company such as BT 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 BT split history from start to finish, an original position size of 1000 shares would have turned into 2000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into BT shares, starting with a $10,000 purchase of BT, presented on a split-history-adjusted basis factoring in the complete BT split history.
![BT split adjusted history picture](/BT-split-adjusted-history.png)
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
01/23/2015 |
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End date: |
09/13/2019 |
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Start price/share: |
$32.29 |
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End price/share: |
$10.57 |
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Starting shares: |
309.69 |
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Ending shares: |
388.98 |
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Dividends reinvested/share: |
$4.33 |
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Total return: |
-58.88% |
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Average Annual Total Return: |
-17.44% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$4,111.01 |
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Years: |
4.64 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
01/23/2015 |
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End date: |
09/13/2019 |
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Start price/share: |
$32.29 |
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End price/share: |
$10.57 |
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Dividends collected/share: |
$4.33 |
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Total return: |
-53.85% |
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Average Annual Total Return: |
-15.36% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$4,613.92 |
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Years: |
4.64 |
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Date |
Ratio |
12/08/2015 | 2 for 1 |
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