Split Adjusted

Split Adjusted

A stock price that takes into consideration the effect of a stock split in order to accurately compare the company's current price to its historical price.

Notes:

If you own a stock that undergoes a stock split, it's imperative that you use the split-adjusted prices when calculating your return. Consider a fictional company that traded for $20 a share in 1990. It has since undergone three 2-for-1 splits and now trades at $30. Although it may seem that the stock price has gone up 50% ((30-20)/20), it has actually appreciated by much more than that. One 1990 share would now be worth $240 because the original share is equivalent to eight current shares, each worth $30. This means that the stock has appreciated approximately 12 times. The 1990 split-adjusted share price would be $2.50 (20/8).

See also: Record Date, Return, Reverse Stock Split, Scrip, Split-Off, Split-Up, Stock Split