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How does the BP stock split affect BP customers?

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Quick Answer

The two-for-one split of BP's stock only affects investors in its ordinary or ADS shares, not its customers. The company explains the stock split to investors on its website.

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Full Answer

The last split in BP's stock occurred in 1999 following shareholder approval. Prior to that action, the company split its stock in the spring of 1997. The company explains how a single ordinary share of stock valued at 50 cents per share was divided into two ordinary shares with value of 25 cents each. The split became effective on October 4, 1999 and applied to stock holders of record as of the close of business on October 1, 1999.

In addition to ordinary shares, BP offers investors outside of the United Kingdom an opportunity to invest in the company via American depositary shares (ADS). Every BP ADS represents six BP ordinary shares on deposit in the United Kingdom and earns an investor the right to receive dividends in U.S. dollars, attend BP shareholder meetings and vote on company matters. For ADS holders, the split resulted in the 2-for-1 division. ADS holders received one additional ADS for each ADS previously held, with one ADS continuing to represent six ordinary shares of BP stock.

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