disolitude said:
Cause, OP is either lying or wrong. Use google or yahoo finance... 2001 microsoft stock = $27 per share 2003 2:1 share split 2011 microsoft stock = $28 per share How is this equal when "adjusted"? |
From Wiki:
When a stock splits, many charts show it similarly to a dividend payout and therefore do not show a dramatic dip in price. Taking the same example as above, a company with 100 shares of stock priced at $50 per share. The company splits its stock 2-for-1. There are now 200 shares of stock and each shareholder holds twice as many shares. The price of each share is adjusted to $25. Based on this example you might expect to see the stock dropping from $50 to $25. This would cause chaos in the market as investors would panic if they did not take time to realize that there was a stock split. So what is done is something called adjusted close price. This adjusted close price will take all the closing prices before the split and divide them by the split ratio. So when you look at the charts it will seem as if the price was always $25. Both the Yahoo! historical price charts[1] and the Google historical price charts[2] show the adjusted close prices. This would seem to suggest that the charts have been adjusted, so the price wouldn't have actually been $27 per share in 2001. It would have been $54, but the closing price pre-split has been adjusted down by 50% on Yahoo charts. As such, it is entirely possible that the $27 per share (2001) is adjusted, so it can be directly compared to the $28 per share in 2011.
