Costco Stock Split History
4 Splits Since 1986
Costco Wholesale Corporation (COST) has split its stock four times. The first split was a 2-for-1 split on July 1, 1986. The second split was a 2-for-1 split on January 14, 2000. The third split was a 3-for-1 split on August 14, 2002. The fourth split was a 2-for-1 split on June 29, 2005.
Stock Splits Help Increase Liquidity
Stock splits are often used to increase the liquidity of a stock. By increasing the number of shares outstanding, the price of each share decreases, making it more affordable for investors to buy. This can lead to increased trading activity and a more active market for the stock.
Costco's stock splits have been successful in increasing the liquidity of the stock. The number of shares outstanding has increased from 10 million in 1986 to over 400 million today. The stock price has also declined from a high of over $100 per share in 1986 to around $50 per share today, making it more affordable for investors to buy.
Conclusion
Costco's stock splits have been a positive development for the company and its shareholders. The splits have helped to increase the liquidity of the stock and make it more affordable for investors to buy. As a result, Costco's stock has outperformed the market over the long term.
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