If You Invested $10,000 in Kroger’s IPO, This Is How Much Money You’d Have Now
As one of the United States' largest retailers generating billions in sales annually, Kroger (NYSE: KR) has made large strides from its IPO in January 1977. A $10,000 investment at the opening IPO share price of $0.75 would have bought 13,333 shares. That investment would now be worth millions today. Let's see how that happened.
Kroger stock has grown at such a rate that the company implemented five 2-for-1 stock splits between 1979 and 2015 to keep the individual share price manageable. With each split, the shareholder received two shares for each share owned, doubling the total shares on hand while cutting the stock price in half. Most companies initiate stock splits to keep shares priced to be attractive to a wider range of buyers. The company's market capitalization, or the number of shares the company has issued multiplied by the current market price of the stock, remains stable before and after a split.
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Source Fool.com
