What was the Kinder Morgan stock split?


Quick Answer

As of 2015, the Kinder Morgan stock split pertains to two past instances in which the stock of the Kinder Morgan energy company experienced a 3-for-2 split, according to Stock Split History. This means that shareholders who owned two shares of KMI stock before the split now owned three shares.

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Full Answer

Kinder Morgan specializes in energy transportation and storage assets, operating pipelines and terminals that handle energy products such as natural gas and crude oil. The company underwent its first 3-for-2 stock split on October 5, 1993. A shareholder owning 1000 shares of KMI stock before the split now owned 1500 shares of stock, explains Stock Split History. The second split for KMI occurred on January 4, 1999, and again sustained a 3-for-2 split. The shareholder who had his 1000 shares increased to 1500 after the first split now saw his 1500 shares expand to 2250 after the second split.

When an increase occurs in the number of outstanding shares, a company as large as KMI maintains its market capitalization through a decrease in the price of each share, sites Stock Split History. This decrease in share price can attract more prospective buyers, which in turn appreciates the share price through a greater demand. In the end, that greater demand benefits the company by raising its total market capitalization.

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