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 Video: What is a Stock Split?
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| First Merchants is a financial holding company. Through its subsidiary, First Merchants Bank (the Bank), Co. provides a range of financial services, including accepting time, savings and demand deposits; making consumer, commercial, agri-business, public finance and real estate mortgage loans; providing personal and corporate trust services; providing brokerage and private wealth management; and providing letters of credit, repurchase agreements and other corporate services. The Bank generates commercial, mortgage, and consumer loans and receives deposits from customers located primarily in central and northern Indiana, northeast Illinois, central Ohio and southeast Michigan counties. According to our FRME split history records, First Merchants has had 6 splits. | |
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First Merchants (FRME) has 6 splits in our FRME split history database. The first split for FRME took place on January 26, 1993. This was a 3 for 2
split, meaning for each 2
shares of FRME 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. FRME's second split took place on October 30, 1995. This was a 3 for 2
split, meaning for each 2
shares of FRME 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. FRME's third split took place on October 26, 1998. This was a 3 for 2
split, meaning for each 2
shares of FRME 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. FRME's 4th split took place on August 29, 2001. This was a 105 for 100 split, meaning for each 100 shares of FRME owned pre-split, the shareholder now owned 105 shares. For example, a 3375 share position pre-split, became a 3543.75 share position following the split. FRME's 5th split took place on August 28, 2002. This was a 105 for 100 split, meaning for each 100 shares of FRME owned pre-split, the shareholder now owned 105 shares. For example, a 3543.75 share position pre-split, became a 3720.9375 share position following the split. FRME's 6th split took place on August 27, 2003. This was a 105 for 100 split, meaning for each 100 shares of FRME owned pre-split, the shareholder now owned 105 shares. For example, a 3720.9375 share position pre-split, became a 3906.984375 share position following the split.
When a company such as First Merchants 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 FRME split history from start to finish, an original position size of 1000 shares would have turned into 3906.984375 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into First Merchants shares, starting with a $10,000 purchase of FRME, presented on a split-history-adjusted basis factoring in the complete FRME split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2013 |
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| End date: |
10/03/2023 |
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| Start price/share: |
$17.89 |
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| End price/share: |
$27.27 |
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| Starting shares: |
558.97 |
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| Ending shares: |
708.74 |
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| Dividends reinvested/share: |
$8.24 |
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| Total return: |
93.27% |
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| Average Annual Total Return: |
6.82% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$19,336.09 |
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| Years: |
9.99 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
10/07/2013 |
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| End date: |
10/03/2023 |
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| Start price/share: |
$17.89 |
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| End price/share: |
$27.27 |
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| Dividends collected/share: |
$8.24 |
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| Total return: |
98.49% |
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| Average Annual Total Return: |
7.10% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$19,848.67 |
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| Years: |
9.99 |
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| Date |
Ratio |
| 01/26/1993 | 3 for 2
| | 10/30/1995 | 3 for 2
| | 10/26/1998 | 3 for 2
| | 08/29/2001 | 105 for 100 | | 08/28/2002 | 105 for 100 | | 08/27/2003 | 105 for 100 |
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