3M is a multinational conglomerate corporation that has been around for over a century. The company has a diverse range of products, from adhesives to medical devices, and is considered one of the most innovative companies in the world. It is also a publicly traded company, meaning that you can buy shares of 3M on the stock market.
One of the ways that 3M has made it easier for people to invest in their company is through stock splits. A stock split is when a company decides to increase the number of shares, while at the same time lowering the per-share price. This makes the stock more affordable for individual investors and can help increase liquidity in the market. In this article, we'll take a closer look at the history of 3M stock splits and what it means for investors.
The First 3M Stock Split
The first 3M stock split happened in 1961. At the time, the company's stock was trading at around $180 per share. The board of directors decided to do a two-for-one stock split, which meant that for every share that an investor owned, they would receive an additional share. After the split, the stock price dropped to around $90 per share.
The reason for the split was to make the stock more affordable to individual investors. At the time, $180 was a lot of money to pay for a single share of stock. By doing a two-for-one split, the board of directors was able to cut the price in half, making it more accessible to a wider range of investors.
The Second 3M Stock Split
The second 3M stock split happened in 1987. By this time, the company's stock price had risen to around $170 per share. The board of directors decided to do another two-for-one stock split, which meant that for every share that an investor owned, they would receive two additional shares. After the split, the stock price dropped to around $85 per share.
The reason for this split was similar to the first. The board of directors wanted to make the stock more affordable to individual investors. By doing a two-for-one split, they were able to cut the price in half, making it more accessible to a wider range of investors.
The Third 3M Stock Split
The third 3M stock split happened in 1998. By this time, the company's stock price had risen to around $100 per share. The board of directors decided to do a three-for-two stock split, which meant that for every two shares that an investor owned, they would receive three additional shares. After the split, the stock price dropped to around $66 per share.
The reason for this split was slightly different than the previous two. Instead of making the stock more affordable to individual investors, the board of directors wanted to increase the liquidity of the stock. By increasing the number of shares, they were able to make it easier for investors to buy and sell shares on the market.
The Fourth 3M Stock Split
The fourth 3M stock split happened in 2003. By this time, the company's stock price had risen to around $140 per share. The board of directors decided to do a two-for-one stock split, which meant that for every share that an investor owned, they would receive an additional share. After the split, the stock price dropped to around $70 per share.
The reason for this split was similar to the first two. The board of directors wanted to make the stock more affordable to individual investors. By doing a two-for-one split, they were able to cut the price in half, making it more accessible to a wider range of investors.
Conclusion
Overall, the history of 3M stock splits shows that the company is committed to making its stock accessible to a wider range of investors. By doing splits, they have been able to lower the price of the stock and increase its liquidity. For individual investors, this means that they have a better chance of investing in one of the most innovative companies in the world.
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