What does a two-for-one stock split mean to shareowners of The Coca-Cola Company?
Shareowners will be issued one additional share of common stock for every share of common stock held at the close of business on the record date, and will have twice as many shares after the payment date. The split will double the number of shares outstanding but the corresponding market value per share will be decreased by half. The overall market value of the shareowner's investment remains the same.
For example, assuming that as of July 27, 2012, the record date, a shareowner owned 100 shares of common stock at a market price of $75 per share. The shareowner's investment value would be $7,500. On August 10, 2012, the distribution date, shareowners of record will be sent notification of the shares received as a result of the split.
After the split, the shareowner will own 200 shares at an initial market price of $37.50 per share (assuming a $75 stock price on August 10, 2012). The shareowner's total investment value would remain the same at $7,500 until the stock price moves up or down.
"We've been advised by the New York Stock Exchange that beginning as early as two days before the record date (July 25 th ) through the payment date (August 10 th ), two separate markets for common stock of The Coca-Cola Company will trade on the NYSE. The "regular way" market, traded under the ticker symbol "KO", will continue to trade at the higher, pre-split price. Shares sold in the market at the "regular way" price will receive full value for the shares sold and the seller is not entitled to the split shares they will receive by virtue of their being holders on the record date. Therefore, the split shares are transferred to the buyers by means of "due bills"."