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 Video: What is a Stock Split?
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| Teekay is a holding company. Through its subsidiaries, Co. is a provider of international crude oil and other marine transportation services. Co. has three primary lines of business: conventional tankers, operational and maintenance marine services, and offshore production (floating production, storage and offloading (FPSO) units). Co.'s subsidiary, Teekay Tankers Ltd. owns all of Co.'s conventional crude oil tankers and product carriers. Co. and its remaining subsidiaries owns two FPSO units and directly conducts business in Australia through the provision of operational and maintenance marine services to third parties, and provides marine and corporate services. According to our TK split history records, Teekay has had 1 split. | |
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Teekay (TK) has 1 split in our TK split history database. The split for TK took place on May 18, 2004. This was a 2 for 1 split, meaning for each share of TK 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 Teekay 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 TK 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 Teekay shares, starting with a $10,000 purchase of TK, presented on a split-history-adjusted basis factoring in the complete TK split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2014 |
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| End date: |
10/04/2024 |
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| Start price/share: |
$65.78 |
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| End price/share: |
$9.49 |
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| Starting shares: |
152.02 |
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| Ending shares: |
175.82 |
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| Dividends reinvested/share: |
$2.76 |
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| Total return: |
-83.31% |
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| Average Annual Total Return: |
-16.39% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$1,669.48 |
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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: |
10/07/2014 |
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| End date: |
10/04/2024 |
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| Start price/share: |
$65.78 |
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| End price/share: |
$9.49 |
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| Dividends collected/share: |
$2.76 |
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| Total return: |
-81.37% |
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| Average Annual Total Return: |
-15.47% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$1,862.55 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 05/18/2004 | 2 for 1 |
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