Why Did Disney Stock Split in 2014?


Quick Answer

Although there were rumors of a pending stock split, The Walt Disney Company stock did not split in 2014. Company records show Disney stock last split in 1998 when the pre-split price reached $111 per share, prompting Disney to give shareholders three shares for each one owned, according to The Walt Disney Company.

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Full Answer

The Walt Disney Company shares have split seven times during the company's history. The first time was in 1956 and the last in 1998. Shareholders received a four-to-one split in 1986 and 1992 and a three-to-one split in 1998, explains The Walt Disney Company. Each time, the split was prompted by a share price that exceeded $100 per share, resulting in the company splitting the share prices to spur more investment and growth of capital.

When The Walt Disney Company split its shares, shareholders received between two and four new shares for each share owned before the split occurred, notes The Walt Disney Company's official website. With share prices at around $110 per share, as of May 2015, many shareholders are considering the possibility the entertainment company may split its share price an eighth time. If a Disney stock split occurs, shareholders retain the current cash value of those shares after the split.

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