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Video: What is a Stock Split?
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Gerdau is mainly focused on the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Colombia, the U.S., Mexico, Peru, the Dominican Republic, Uruguay and Venezuela. Co. operates steel mills that produce steel by direct iron ore reduction in blast furnaces and in electric arc furnaces. Its product mix includes crude steel; finished products for the construction industry, such as rebar, wire-rods, structural shapes, hot-rolled coils and heavy plates; finished industrial products, such as commercial rolled-steel bars, light profiles and wires; and agricultural products, such as stakes, smooth wire and barbed-wire. According to our GGB split history records, Gerdau S.A. has had 7 splits. | |
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Gerdau S.A. (GGB) has 7 splits in our GGB split history database. The first split for GGB took place on May 09, 2000. This was a 2 for 1
split, meaning for each share of GGB 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. GGB's second split took place on May 13, 2003. This was a 130 for 100 split, meaning for each 100 shares of GGB owned pre-split, the shareholder now owned 130 shares. For example, a 2000 share position pre-split, became a 2600 share position following the split. GGB's third split took place on May 07, 2004. This was a 2 for 1 split, meaning for each share of GGB owned pre-split, the shareholder now owned 2 shares. For example, a 2600 share position pre-split, became a 5200 share position following the split. GGB's 4th split took place on April 19, 2005. This was a 3 for 2 split, meaning for each 2 shares of GGB owned pre-split, the shareholder now owned 3 shares. For example, a 5200 share position pre-split, became a 7800 share position following the split. GGB's 5th split took place on April 21, 2006. This was a 3 for 2 split, meaning for each 2 shares of GGB owned pre-split, the shareholder now owned 3 shares. For example, a 7800 share position pre-split, became a 11700 share position following the split. GGB's 6th split took place on June 20, 2008. This was a 2 for 1 split, meaning for each share of GGB owned pre-split, the shareholder now owned 2 shares. For example, a 11700 share position pre-split, became a 23400 share position following the split. GGB's 7th split took place on March 22, 2023. This was a 105 for 100 split, meaning for each 100 shares of GGB owned pre-split, the shareholder now owned 105 shares. For example, a 23400 share position pre-split, became a 24570 share position following the split.
When a company such as Gerdau S.A. 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 GGB split history from start to finish, an original position size of 1000 shares would have turned into 24570 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Gerdau S.A. shares, starting with a $10,000 purchase of GGB, presented on a split-history-adjusted basis factoring in the complete GGB split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/01/2014 |
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End date: |
03/28/2024 |
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Start price/share: |
$5.93 |
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End price/share: |
$4.42 |
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Starting shares: |
1,686.34 |
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Ending shares: |
2,599.37 |
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Dividends reinvested/share: |
$1.95 |
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Total return: |
14.89% |
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Average Annual Total Return: |
1.40% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$11,491.14 |
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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: |
04/01/2014 |
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End date: |
03/28/2024 |
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Start price/share: |
$5.93 |
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End price/share: |
$4.42 |
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Dividends collected/share: |
$1.95 |
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Total return: |
7.45% |
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Average Annual Total Return: |
0.72% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$10,743.57 |
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Years: |
10.00 |
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Date |
Ratio |
05/09/2000 | 2 for 1
| 05/13/2003 | 130 for 100 | 05/07/2004 | 2 for 1 | 04/19/2005 | 3 for 2 | 04/21/2006 | 3 for 2 | 06/20/2008 | 2 for 1 | 03/22/2023 | 105 for 100 |
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