Yesterday I came across the stock of Archer-Daniels-Midland Co. (Symbol – ADM) on Yahoo! Finance. When I saw the split history of this stock, I was surprised and curious. So much so that I have to ask you readers out there who know a thing or two about the reasons behind the unique/unusual/abnormal split history of this stock.
The stock history goes something like this:
- 3:2 on 03-June-1986
- 3:2 on 05-December-1989
- 21:20 on 17-August-1993
- 3:2 on 06-December-1994
- 21:20 on 15-August-1996
- 21:20 on 14-August-1997
- 21:20 on 20-August-1998
- 105:100 on 19-August-1999
- 105:100 on 24-August-2000
- 105:100 on 30-August-2001
I can understand the 3:2 stock splits, but 21:20 and 105:100 surprises me. Why a company would split the stock this way? And why so often?
If you know any other peculiar split history of a stock, let me know by commenting on this post. Thanks.
3 comments:
The 21:20 (incidentally 105:100=21:20) split is most likely a scrip dividend being payed out, where instead of cash, shares are given as a dividend payment.
Works out to a 5% dividend, right?
What's the difference between a 21:20 split and a 105:100 split?
Does this mean anyone owning less than 100 shares will be cashed out?
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