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Video: What is a Stock Split?
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NSTAR is a holding company. Through its subsidiaries, Co. is engaged in the energy delivery business. As of Dec 31 2011, Co. served about 1.4 million customers in Massachusetts, including approximately 1.1 million electric distribution customers in 81 communities and approximately 300,000 natural gas distribution customers in 51 communities. Co.'s primary business is electric and natural gas distribution operations that provide energy transmission and delivery services. Co.'s unregulated operations include telecommunications and liquefied natural gas service. Telecommunications services are provided through Co.'s subsidiary, NSTAR Communications, Inc. According to our NST split history records, NST has had 2 splits. | |
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NST (NST) has 2 splits in our NST split history database. The first split for NST took place on October 02, 1986. This was a 2 for 1
split, meaning for each share of NST 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. NST's second split took place on June 06, 2005. This was a 2 for 1 split, meaning for each share of NST 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 NST 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 NST 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 NST shares, starting with a $10,000 purchase of NST, presented on a split-history-adjusted basis factoring in the complete NST split history.
NST -- use the split history when considering split-adjusted past price performance. |
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Date |
Ratio |
10/02/1986 | 2 for 1
| 06/06/2005 | 2 for 1 |
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