Oracle Corporation, one of the largest software companies in the world, has a long and storied history when it comes to stock splits. This article will take a look back at the history of Oracle stock splits, including the most recent split in March 2021. We'll also discuss what a stock split is, why companies choose to do them, and the impact they have on investors.
What is a Stock Split?
A stock split is when a company divides its existing shares into multiple new shares. For example, if a company has 100 shares, and it does a 2-for-1 stock split, that would mean that the company now has 200 shares. The value of each new share is half of the previous one, but the total value of the stock remains the same. Stock splits are a common way for companies to increase liquidity, as the lower share price can make it easier for new investors to buy in.
Oracle's Stock Split History
Oracle has done four stock splits in its history. The first one was a 2-for-1 split in March of 1997. The second one was a 3-for-1 split in August of 2003. The third was a 2-for-1 split in March of 2007. The most recent one was a 2-for-1 split in March of 2021.
The 1997 split was the first time Oracle had ever done a stock split. It was done in order to make the stock more accessible to small investors, as the share price was high at the time. The 2003 split was done to further increase liquidity, while the 2007 and 2021 splits were done to reward shareholders.
The Impact of Stock Splits
A stock split can have both positive and negative effects on a company's stock. On the positive side, it can make the stock more attractive to new investors and make it easier to buy and sell. On the negative side, it can also lead to dilution of the stock, as the total value of the stock remains the same but there are now more shares outstanding.
It's also important to note that stock splits don't necessarily have an immediate impact on the company's stock price. In the short term, the stock price may not change at all, as the total value of the stock remains the same. However, in the long term, the stock price may appreciate due to increased liquidity.
Conclusion
Oracle's stock split history is a testament to the success of the company over the years. The stock splits have helped to increase liquidity and reward shareholders, while also making the stock more attractive to new investors. As Oracle continues to grow and evolve, it will be interesting to see how the company's stock split history will continue to shape its future.