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 Video: What is a Stock Split?
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| Pepco Holdings is a holding company. Through its subsidiaries, Co. is engaged in the transmission, distribution and default supply of electricity and the distribution and supply of natural gas (Power Delivery). Co.'s regulated public utility subsidiaries are Potomac Electric Power Co., Delmarva Power & Light Co., and Atlantic City Electric Co., each of which owns and operates a network of wires, substations and other equipment that are classified as transmission facilities, distribution facilities or common facilities. At Dec 31 2014, Co.'s Power Delivery business distributed electricity to a population of approximately 4.8 million customers. According to our POM split history records, POM has had 1 split. | |
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POM (POM) has 1 split in our POM split history database. The split for POM took place on May 19, 1987. This was a 2 for 1
split, meaning for each share of POM 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.
When a company such as POM 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 POM split history from start to finish, an original position size of 1000 shares would have turned into 2000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into POM shares, starting with a $10,000 purchase of POM, presented on a split-history-adjusted basis factoring in the complete POM split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
01/23/2015 |
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| End date: |
03/24/2016 |
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| Start price/share: |
$27.39 |
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| End price/share: |
$26.93 |
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| Starting shares: |
365.10 |
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| Ending shares: |
380.82 |
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| Dividends reinvested/share: |
$1.08 |
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| Total return: |
2.55% |
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| Average Annual Total Return: |
2.19% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$10,255.46 |
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| Years: |
1.16 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
01/23/2015 |
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| End date: |
03/24/2016 |
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| Start price/share: |
$27.39 |
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| End price/share: |
$26.93 |
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| Dividends collected/share: |
$1.08 |
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| Total return: |
2.26% |
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| Average Annual Total Return: |
1.94% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$10,226.25 |
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| Years: |
1.16 |
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| Date |
Ratio |
| 05/19/1987 | 2 for 1
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