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 Video: What is a Stock Split?
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| International Business Machines provides solutions and products that utilize data, information technology, capability in industries and business processes. Co. has four business segments: Software, which provides software solutions that address client needs for a hybrid cloud platform, data and AI, automation, and security; Consulting, which provides knowledge and capabilities in business transformation and technology implementation; Infrastructure, which provides solutions for hybrid cloud and is the foundation of the hybrid cloud stack; and Financing, which facilitates its clients' acquisition of information technology systems, software and services through its financing solutions. According to our IBM split history records, International Business Machines has had 8 splits. | |
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International Business Machines (IBM) has 8 splits in our IBM split history database. The first split for IBM took place on May 18, 1964. This was a 5 for 4
split, meaning for each 4
shares of IBM owned pre-split, the shareholder now owned 5 shares. For example, a 1000 share position pre-split, became a 1250 share position following the split. IBM's second split took place on May 18, 1966. This was a 3 for 2
split, meaning for each 2
shares of IBM owned pre-split, the shareholder now owned 3 shares. For example, a 1250 share position pre-split, became a 1875 share position following the split. IBM's third split took place on April 23, 1968. This was a 2 for 1
split, meaning for each share of IBM owned pre-split, the shareholder now owned 2 shares. For example, a 1875 share position pre-split, became a 3750 share position following the split. IBM's 4th split took place on May 29, 1973. This was a 5 for 4
split, meaning for each 4
shares of IBM owned pre-split, the shareholder now owned 5 shares. For example, a 3750 share position pre-split, became a 4687.5 share position following the split. IBM's 5th split took place on June 01, 1979. This was a 4 for 1
split, meaning for each share of IBM owned pre-split, the shareholder now owned 4 shares. For example, a 4687.5 share position pre-split, became a 18750 share position following the split. IBM's 6th split took place on May 28, 1997. This was a 2 for 1
split, meaning for each share of IBM owned pre-split, the shareholder now owned 2 shares. For example, a 18750 share position pre-split, became a 37500 share position following the split. IBM's 7th split took place on May 27, 1999. This was a 2 for 1
split, meaning for each share of IBM owned pre-split, the shareholder now owned 2 shares. For example, a 37500 share position pre-split, became a 75000 share position following the split. IBM's 8th split took place on November 04, 2021. This was a 1046 for 1000 split, meaning for each 1000 shares of IBM owned pre-split, the shareholder now owned 1046 shares. For example, a 75000 share position pre-split, became a 78450 share position following the split.
When a company such as International Business Machines 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 IBM split history from start to finish, an original position size of 1000 shares would have turned into 78450 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into International Business Machines shares, starting with a $10,000 purchase of IBM, presented on a split-history-adjusted basis factoring in the complete IBM split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$177.54 |
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| End price/share: |
$222.72 |
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| Starting shares: |
56.33 |
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| Ending shares: |
86.70 |
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| Dividends reinvested/share: |
$59.59 |
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| Total return: |
93.11% |
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| Average Annual Total Return: |
6.80% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$19,303.42 |
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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: |
10/07/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$177.54 |
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| End price/share: |
$222.72 |
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| Dividends collected/share: |
$59.59 |
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| Total return: |
59.01% |
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| Average Annual Total Return: |
4.75% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$15,903.22 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 05/18/1964 | 5 for 4
| | 05/18/1966 | 3 for 2
| | 04/23/1968 | 2 for 1
| | 05/29/1973 | 5 for 4
| | 06/01/1979 | 4 for 1
| | 05/28/1997 | 2 for 1
| | 05/27/1999 | 2 for 1
| | 11/04/2021 | 1046 for 1000 |
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