Microsoft to Split Stock 2-for-1 for Seventh Time

Strategic Insights -

Microsoft Corp. has announced plans to split its stock for the seventh time in its history, with shareholders eligible for the 2-for-1 split if they are recorded on February 6. This move is aimed at making the stock price more accessible to investors. The software giant currently has about 2.4 billion shares outstanding, and with the split, shareholders will receive two new shares for every one they own. Gregory B. Maffei, Microsoft's chief financial officer, said the company has heard from investors that they want the stock price to be more accessible, and this split is intended to address that interest.

Key Takeaways:

  • Microsoft is splitting its stock 2-for-1 for the seventh time in the company's history.
  • Shareholders of record on February 6 will be eligible for the split.
  • The split will leave Microsoft with about 2.4 billion shares outstanding.
  • The company's stock price has seen a significant increase since its 1986 public debut, with one share worth 72 times its original value after the latest split.
  • Investors have expressed interest in a stock price split, with Microsoft aiming to address this interest with the current move.
  • The split is further proof of Microsoft's commitment to making its stock more accessible to a wider range of investors.

Statistics:

  • Microsoft's stock price has risen significantly since its 1986 public debut, making one share of stock worth 72 times its original value after the latest split.
  • The company's current share price is $141.75, up from $138.25 the previous day.
  • Microsoft has about 2.4 billion shares outstanding, which will be reduced to about 1.2 billion shares after the split.
  • The split will make Microsoft's stock price more accessible to investors, with a lower cost per share.

Sources:

PaineWebber Group Inc. and the Gallup Organization (survey on social security)

National Association of Realtors (home resales figures)

Microsoft Corp. (stock split announcement)

Gregory B. Maffei (Microsoft's chief financial officer)

Stanley Rosenblatt (lawyer for flight attendants who sued the tobacco industry)

Outsourcing Solutions Inc. (announcement on sale of Union Corp.)

Pulaski Bank (announcement on stock offering)