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 Video: What is a Stock Split?
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| King Pharmaceuticals is a pharmaceutical company that is engaged in basic research and development, manufacture, marketing and sale of branded prescription pharmaceutical products and animal health products. Co.'s branded prescription pharmaceuticals include neuroscience products for use in humans primarily pain medicines, hospital products, and legacy brands. Co.'s auto-injector business manufactures acute care medicines for use in humans that are delivered using an auto-injector. Co.'s animal health business is engaged in the development, registration, manufacture and marketing of medicated feed additives and water soluble therapeutics, primarily for poultry, cattle and swine. According to our KG split history records, KG has had 3 splits. | |
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KG (KG) has 3 splits in our KG split history database. The first split for KG took place on November 12, 1999. This was a 3 for 2
split, meaning for each 2
shares of KG 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. KG's second split took place on June 22, 2000. This was a 3 for 2
split, meaning for each 2
shares of KG 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. KG's third split took place on July 20, 2001. This was a 4 for 3 split, meaning for each 3 shares of KG owned pre-split, the shareholder now owned 4 shares. For example, a 2250 share position pre-split, became a 3000 share position following the split.
When a company such as KG 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 KG split history from start to finish, an original position size of 1000 shares would have turned into 3000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into KG shares, starting with a $10,000 purchase of KG, presented on a split-history-adjusted basis factoring in the complete KG split history.
KG -- use the split history when considering split-adjusted past price performance. |
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| Date |
Ratio |
| 11/12/1999 | 3 for 2
| | 06/22/2000 | 3 for 2
| | 07/20/2001 | 4 for 3 |
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