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 Video: What is a Stock Split?
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| MBIA is a holding company. Co.'s primary business is to provide financial guarantee insurance to the U.S.' public finance markets through its indirect, wholly-owned subsidiary, National Public Finance Guarantee Corporation (National). Co. has three operating segments: U.S. public finance insurance, which is managed through National and provides unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due; corporate, which consists of general corporate activities; and international and structured finance insurance, which insures the investment contracts written by Co. According to our MBI split history records, MBIA has had 2 splits. | |
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MBIA (MBI) has 2 splits in our MBI split history database. The first split for MBI took place on October 30, 1997. This was a 2 for 1
split, meaning for each share of MBI 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. MBI's second split took place on April 23, 2001. This was a 3 for 2 split, meaning for each 2 shares of MBI owned pre-split, the shareholder now owned 3 shares. For example, a 2000 share position pre-split, became a 3000 share position following the split.
When a company such as MBIA 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 MBI 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 MBIA shares, starting with a $10,000 purchase of MBI, presented on a split-history-adjusted basis factoring in the complete MBI 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: |
10/08/2024 |
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| Start price/share: |
$8.85 |
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| End price/share: |
$3.40 |
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| Starting shares: |
1,129.94 |
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| Ending shares: |
2,485.20 |
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| Dividends reinvested/share: |
$8.00 |
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| Total return: |
-15.50% |
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| Average Annual Total Return: |
-1.67% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$8,449.68 |
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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: |
10/10/2014 |
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| End date: |
10/08/2024 |
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| Start price/share: |
$8.85 |
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| End price/share: |
$3.40 |
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| Dividends collected/share: |
$8.00 |
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| Total return: |
28.81% |
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| Average Annual Total Return: |
2.56% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$12,876.87 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 10/30/1997 | 2 for 1
| | 04/23/2001 | 3 for 2 |
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