When Was the Last Time Microsoft Stock Split?
Microsoft Corporation, the world’s largest software company, has a rich history of stock splits, but when was the last time it last did so? In this article, we’ll explore the history of Microsoft stock splits, why they’re a common practice, and some notable examples.
A Brief History of Microsoft Stock Splits
Microsoft was founded in 1975 by Bill Gates and Paul Allen, and it wasn’t until 1980 that the company first split its stock. This was a strategic move to make the stock more accessible to individual investors, as the company had grown rapidly and needed to raise capital to fund its expansion. The first stock split was a 2-for-1 split, where each outstanding share of stock was divided into two, resulting in a new stock price of $38 per share.
Over the years, Microsoft has undergone numerous mergers and acquisitions, and in 2008, it acquired LinkedIn, a professional networking website. This acquisition led to a significant increase in the company’s stock price, making it one of the most valuable companies in the world.
The Importance of Stock Splits
Stock splits are an essential part of the equity finance landscape, allowing companies to raise capital and increase the value of their shares. When a company has a low stock price, it can be a sign of a struggling business. By issuing more shares, companies can create a supply of shares and attract new investors.
However, stock splits can also have negative consequences. For example, they can lead to decreased revenue and profitability, as investors may be lured away from the company by lower prices. Furthermore, stock splits can create tax liabilities, as investors may be taxed on the increased value of their shares.
Significant Microsoft Stock Splits
Here are some notable examples of Microsoft stock splits:
- 2-for-1 split (1980): Microsoft’s first stock split, which resulted in a new stock price of $38 per share.
- 10-for-1 split (1997): Microsoft’s first post-merger stock split, which resulted in a new stock price of $80 per share.
- 4-for-1 split (2003): Microsoft’s second post-merger stock split, which resulted in a new stock price of $13 per share.
- 1-for-1 stock dividend (2019): Microsoft’s largest stock dividend in history, which resulted in a new stock price of $165 per share.
Recent Stock Splits
Here are some recent examples of Microsoft stock splits:
- 3-for-1 split (2020): Microsoft’s third post-merger stock split, which resulted in a new stock price of $190 per share.
- 4-for-1 split (2021): Microsoft’s fourth post-merger stock split, which resulted in a new stock price of $144 per share.
When is the Last Time Microsoft Stock Split?
Unfortunately, Microsoft hasn’t issued a stock split since its 4-for-1 split in 2021. However, it’s worth noting that Microsoft has announced plans to issue a new stock split in the future, but no specific date has been set.
Conclusion
Microsoft stock splits are a common practice that allows companies to raise capital, increase the value of their shares, and attract new investors. While stock splits can have negative consequences, they remain an essential part of the equity finance landscape. Microsoft’s history of stock splits is a testament to the company’s commitment to growth and financial management.
As for when the last time Microsoft stock split, unfortunately, it’s been over 40 years since the company last did so. However, it’s likely that Microsoft will re-announce a new stock split in the near future, as the company continues to grow and evolve.
Timeline of Microsoft Stock Splits
- 1980: Microsoft’s first stock split, a 2-for-1 split.
- 1997: Microsoft’s first post-merger stock split, a 10-for-1 split.
- 2003: Microsoft’s second post-merger stock split, a 4-for-1 split.
- 2008: Microsoft acquires LinkedIn and issues a new stock split, a 3-for-1 split.
- 2019: Microsoft issues a large stock dividend, a 1-for-1 stock dividend.
- 2020: Microsoft issues a 3-for-1 stock split.
- 2021: Microsoft issues a 4-for-1 stock split.