What does a two-for-one stock split mean to Dominion shareholders?
A two-for-one stock split means a Dominion shareholder will be issued one additional share of common stock for every share of common stock held by that shareholder at the close of business on the record date. The split doubles the number of shares outstanding but the corresponding market value per share decreases by half.
A two-for-one stock split means a Dominion shareholder will be issued one additional share of common stock for every share of common stock held by that shareholder at the close of business on the record date. The split doubles the number of shares outstanding but the corresponding market value per share decreases by half. Here’s an example: Assume that as of the November 9, 2007 record date, an investor owns 100 shares of Dominion common stock and the market price is $90 per share. The investor’s total investment value would be $9,000. On the November 20, 2007 ex-split date the investor will own 200 shares at a market price of $45 per share (assuming a $90 stock price on November 19, 2007). The investor’s total investment value in Dominion would remain the same at $9,000 until the stock price moves up or down.
