As of 2015, General Electric has had nine stock splits in its history. The first of these was in 1926, while the ninth one took place in 2000, according to the company website.Continue Reading
The first of General Electric’s nine stock splits was a 4-for-1 split, as stated by the company's investor relations department. This corporate action in 1926 was followed in 1930 by another 4-for-1 split. That meant that every one share that a stockholder owned was replaced by four new ones.
If the price of the stock had, for example, been originally priced at $100, it would have been adjusted so that the shareholder now had four shares, each valued at $25 a share. The market value of the shareholder’s position would remain unchanged.
In 1954, the General Electric stock undertook a 3-for-1 split, notes the GE website. The next five stock splits, in 1971, 1983, 1987, 1994 and 1997, were all 2-for-1 splits. The share price adjustment in 2000 was once again a 3-for-1 split.
There is no set rule dictating when the company chooses to split the stock, according to GE.com. However, the last few times a split took place, the share price was trading over $100 per share when the board made its recommendation to shareholders that they vote to split the stock.Learn more about Investing