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 Video: What is a Stock Split?
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| Legg Mason is a holding company. Through its subsidiaries, Co. is an asset management company that provides investment management and related products and services. Co.'s investment advisory services include discretionary and non-discretionary management of separate investment accounts for institutional and individual investors. Co.'s investment products include proprietary mutual funds ranging from money market and other liquidity products to fixed income, equity and alternative funds managed in various investment styles. Co. also provides other domestic and offshore funds to both retail and institutional investors, privately placed real estate funds, hedge funds, and funds-of-hedge funds. According to our LM split history records, LM has had 4 splits. | |
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LM (LM) has 4 splits in our LM split history database. The first split for LM took place on September 27, 1993. This was a 5 for 4
split, meaning for each 4
shares of LM 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. LM's second split took place on September 25, 1997. This was a 4 for 3
split, meaning for each 3
shares of LM owned pre-split, the shareholder now owned 4 shares. For example, a 1250 share position pre-split, became a 1666.66666666667 share position following the split. LM's third split took place on September 28, 1998. This was a 2 for 1
split, meaning for each share of LM owned pre-split, the shareholder now owned 2 shares. For example, a 1666.66666666667 share position pre-split, became a 3333.33333333333 share position following the split. LM's 4th split took place on September 27, 2004. This was a 3 for 2 split, meaning for each 2 shares of LM owned pre-split, the shareholder now owned 3 shares. For example, a 3333.33333333333 share position pre-split, became a 5000 share position following the split.
When a company such as LM 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 LM split history from start to finish, an original position size of 1000 shares would have turned into 5000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into LM shares, starting with a $10,000 purchase of LM, presented on a split-history-adjusted basis factoring in the complete LM split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/10/2014 |
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| End date: |
07/31/2020 |
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| Start price/share: |
$49.46 |
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| End price/share: |
$49.99 |
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| Starting shares: |
202.18 |
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| Ending shares: |
240.98 |
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| Dividends reinvested/share: |
$6.48 |
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| Total return: |
20.47% |
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| Average Annual Total Return: |
3.26% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$12,049.22 |
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| Years: |
5.81 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
10/10/2014 |
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| End date: |
07/31/2020 |
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| Start price/share: |
$49.46 |
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| End price/share: |
$49.99 |
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| Dividends collected/share: |
$6.48 |
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| Total return: |
14.17% |
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| Average Annual Total Return: |
2.31% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$11,419.14 |
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| Years: |
5.81 |
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| Date |
Ratio |
| 09/27/1993 | 5 for 4
| | 09/25/1997 | 4 for 3
| | 09/28/1998 | 2 for 1
| | 09/27/2004 | 3 for 2 |
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