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 Video: What is a Stock Split?
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| Mercury General is an insurance holding company. Through its insurance subsidiaries, Co. writes personal automobile insurance. Co. also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance. Co. provides the following types of automobile coverage: collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards. Co. provides the following types of homeowners coverage: dwelling, liability, personal property, fire, and other hazards. Co. sells its policies through a network of independent agents, its insurance agencies, and directly through internet sales portals. According to our MCY split history records, Mercury General has had 2 splits. | |
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Mercury General (MCY) has 2 splits in our MCY split history database. The first split for MCY took place on September 14, 1992. This was a 2 for 1
split, meaning for each share of MCY 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. MCY's second split took place on October 10, 1997. This was a 2 for 1
split, meaning for each share of MCY owned pre-split, the shareholder now owned 2 shares. For example, a 2000 share position pre-split, became a 4000 share position following the split.
When a company such as Mercury General 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 MCY split history from start to finish, an original position size of 1000 shares would have turned into 4000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Mercury General shares, starting with a $10,000 purchase of MCY, presented on a split-history-adjusted basis factoring in the complete MCY 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: |
$49.54 |
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| End price/share: |
$63.11 |
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| Starting shares: |
201.86 |
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| Ending shares: |
316.96 |
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| Dividends reinvested/share: |
$22.28 |
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| Total return: |
100.04% |
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| Average Annual Total Return: |
7.18% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$20,008.75 |
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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: |
$49.54 |
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| End price/share: |
$63.11 |
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| Dividends collected/share: |
$22.28 |
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| Total return: |
72.36% |
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| Average Annual Total Return: |
5.59% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$17,230.29 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 09/14/1992 | 2 for 1
| | 10/10/1997 | 2 for 1
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