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 Video: What is a Stock Split?
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| Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. Co.'s primary business is to contract its drilling rigs, related equipment and work crews on a dayrate basis to drill oil and gas wells. As of Feb. 9, 2017, it owned or had partial ownership interests in and operated 56 mobile offshore drilling units. As of Feb. 9, 2017, its fleet consisted of 30 floaters, seven harsh environment floaters, three deepwater floaters, six midwater floaters and 10 high-specification jackups. As Feb. 9, 2017, it also had four ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed. According to our RIG split history records, Transocean has had 2 splits. | |
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Transocean (RIG) has 2 splits in our RIG split history database. The first split for RIG took place on September 22, 1997. This was a 2 for 1
split, meaning for each share of RIG 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. RIG's second split took place on November 27, 2007. This was a 13427 for 10000 split, meaning for each 10000 shares of RIG owned pre-split, the shareholder now owned 13427 shares. For example, a 2000 share position pre-split, became a 2685.4 share position following the split.
When a company such as Transocean 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 RIG split history from start to finish, an original position size of 1000 shares would have turned into 2685.4 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Transocean shares, starting with a $10,000 purchase of RIG, presented on a split-history-adjusted basis factoring in the complete RIG split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
12/16/2014 |
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| End date: |
12/13/2024 |
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| Start price/share: |
$16.78 |
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| End price/share: |
$3.86 |
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| Starting shares: |
595.95 |
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| Ending shares: |
633.29 |
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| Dividends reinvested/share: |
$1.05 |
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| Total return: |
-75.56% |
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| Average Annual Total Return: |
-13.14% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$2,444.55 |
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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: |
12/16/2014 |
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| End date: |
12/13/2024 |
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| Start price/share: |
$16.78 |
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| End price/share: |
$3.86 |
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| Dividends collected/share: |
$1.05 |
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| Total return: |
-70.74% |
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| Average Annual Total Return: |
-11.56% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$2,927.44 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 09/22/1997 | 2 for 1
| | 11/27/2007 | 13427 for 10000 |
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