
GE stock has undergone several significant splits over the years, with the first one happening in 1909. The company's stock was initially valued at $100 per share.
In 1921, GE stock split 2-for-1, effectively doubling the number of shares outstanding. This move was likely intended to make the stock more accessible to a wider range of investors.
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What Is a Split?
A stock split is a corporate action that divides a company's existing shares into multiple new shares, without changing the company's overall value. This process is often used to make the stock more affordable for investors.
The total market capitalization of the company remains the same, even after a stock split. This is because the number of shares increases, but the total value of the company doesn't change.
In a stock split, each existing share is divided into two or more new shares, effectively lowering the price of each share. For example, in a 2-for-1 stock split, the price of each share is halved.
The value of the investment stays the same, but the lower price per share can make it more attractive to potential investors. This can lead to increased trading activity and a more liquid market.
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GE Stock Split Details

The GE stock split is a significant event that garners attention in the financial world.
GE's stock split involved a specific ratio, such as a 3-for-1 or 5-for-1 split, depending on the announcement. This meant that for every share held, investors received additional shares proportional to the split ratio.
The effective date marked the transition, after which trading commenced with the new share structure.
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GE Split Details
General Electric's stock split was a significant development, and understanding the details is crucial for investors.
The split ratio was a key aspect of the announcement, with some splits involving a 3-for-1 or 5-for-1 ratio.
The effective date marked the transition point, after which trading commenced with the new share structure.
Investors received additional shares proportional to the split ratio, for every share they held.
The specific ratio and effective date were central to discussions among analysts and investors.
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Assessing the GE Split as an Investor
The GE stock split is a significant development that requires careful consideration from investors.

General Electric's decision to split its stock was likely driven by strategic goals, including aligning its stock price with market peers.
As an investor, it's essential to evaluate GE's financial health, revenue growth, and profitability.
Assessing the broader market conditions and how they might impact GE's performance is also crucial.
To ensure your portfolio remains balanced and diversified, consider the following key factors:
- Company Fundamentals: Evaluate GE’s financial health, revenue growth, and profitability.
- Industry Trends: Assess the broader market conditions and how they might impact GE’s performance.
- Portfolio Diversification: Ensure that your portfolio remains balanced and diversified, even if you’re investing in GE shares.
Reasons and Implications
Companies like General Electric opt for stock splits for several strategic reasons. One reason is to align their stock price with market peers.
A stock split can also reflect a company's confidence in its financial health. This is likely what drove GE's decision to split its stock.
By splitting its stock, a company can attract a more diversified investor base. This can be beneficial for long-term growth and stability.
Here are some key factors to consider when evaluating a company's stock split:
- Company Fundamentals: Evaluate the company's financial health, revenue growth, and profitability.
- Industry Trends: Assess the broader market conditions and how they might impact the company's performance.
- Portfolio Diversification: Ensure that your portfolio remains balanced and diversified, even if you're investing in the company's shares.
Frequently Asked Questions
Are stock splits historically good?
Stock splits have historically been successful in boosting trading and investor interest, leading to significant outperformance compared to the S&P 500 in the following year. This trend suggests that stock splits can be a positive indicator for investors.
Sources
- https://www.investopedia.com/ge-completes-its-split-into-3-public-companies-as-ge-vernova-makes-its-trading-debut-8623533
- https://www.macrotrends.net/stocks/charts/GE/ge-aerospace/stock-price-history
- https://trendlyne.com/us/equity/corporate-actions/GE/1403685/general-electric-co/
- https://postingforhub.co.uk/ge-stock-split/
- https://download.macrotrends.net/stocks/charts/GEVO/gevo/stock-splits
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