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 Video: What is a Stock Split?
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| Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. Co.'s segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks. The IT & Cloud business includes two business units: IT & Cloud Products and IT & Cloud Services. The focus in IT & Cloud is to help telecom operators and selected enterprises through the digital transformations ahead. According to our ERIC split history records, Ericsson has had 2 splits. | |
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Ericsson (ERIC) has 2 splits in our ERIC split history database. The first split for ERIC took place on June 10, 2008. This was a 2 for 1 split, meaning for each share of ERIC 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. ERIC's second split took place on June 01, 1998.
When a company such as Ericsson 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 ERIC 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 Ericsson shares, starting with a $10,000 purchase of ERIC, presented on a split-history-adjusted basis factoring in the complete ERIC split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
12/10/2015 |
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| End date: |
12/08/2025 |
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| Start price/share: |
$9.13 |
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| End price/share: |
$9.57 |
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| Starting shares: |
1,095.29 |
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| Ending shares: |
1,461.61 |
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| Dividends reinvested/share: |
$2.22 |
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| Total return: |
39.88% |
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| Average Annual Total Return: |
3.41% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$13,985.09 |
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| Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
12/10/2015 |
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| End date: |
12/08/2025 |
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| Start price/share: |
$9.13 |
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| End price/share: |
$9.57 |
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| Dividends collected/share: |
$2.22 |
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| Total return: |
29.17% |
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| Average Annual Total Return: |
2.59% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$12,914.59 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 06/10/2008 | 2 for 1 | | 06/01/1998 | 1 for 1 |
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