Coke To Split: Should The Dow Change Its Components?
On Tuesday morning, Coca-Cola (KO) announced a 2 for 1 stock split, the 11th split in company history and the first in 16 years. The number of authorized shares will double from 5.6 billion to 11.2 billion. As per the press release:
The record date for the stock split is expected to be July 27, 2012, with new shares expected to be distributed on or about Aug. 10, 2012. Each shareowner of record on the close of business on the record date will receive one additional share of common stock for each share held.
Coca-Cola has been a public company since 1919 and the first split was enacted in 1927. According to the company, if all dividends were reinvested annually, one share of the company's stock purchased for $40 in 1919 would be worth roughly $10.3 million today. It has been a great investment over time.
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