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 Video: What is a Stock Split?
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| Reynolds American is a holding company. Co.'s operating subsidiaries include: R. J. Reynolds Tobacco Company, a tobacco company; Santa Fe Natural Tobacco Company, Inc., a manufacturer and marketer of cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand; and American Snuff Co., a provider of adult tobacco consumers a range of smokeless tobacco products, primarily moist snuff, with its GRIZZLY and KODIAK brands; CRJR Vapor, a marketer of VUSE Digital Vapor Cigarette products; Niconovum USA, Inc., a marketer of a nicotine replacement therapy gum, ZONNIC; and Niconovum AB, a marketer of nicotine replacement therapy products in Sweden under the ZONNIC brand name. According to our RAI split history records, RAI has had 3 splits. | |
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RAI (RAI) has 3 splits in our RAI split history database. The first split for RAI took place on August 15, 2006. This was a 2 for 1 split, meaning for each share of RAI 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. RAI's second split took place on November 16, 2010. This was a 2 for 1 split, meaning for each share of RAI 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. RAI's third split took place on September 01, 2015. This was a 2 for 1 split, meaning for each share of RAI owned pre-split, the shareholder now owned 2 shares. For example, a 4000 share position pre-split, became a 8000 share position following the split.
When a company such as RAI 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 RAI split history from start to finish, an original position size of 1000 shares would have turned into 8000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into RAI shares, starting with a $10,000 purchase of RAI, presented on a split-history-adjusted basis factoring in the complete RAI split history.
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| Date |
Ratio |
| 08/15/2006 | 2 for 1 | | 11/16/2010 | 2 for 1 | | 09/01/2015 | 2 for 1 |
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