On 12/1/2020, McCormick completed a 2-for-1 forward stock split. As of 12/1/2020, shareholders hold 2 shares of MKC for every 1 share previously held. As a result, McCormick has adjusted their price per share to accommodate the increase in the company’s outstanding shares. A forward stock split does not by itself change the total dollar value of your position, but as always the value of a company’s stock may change due to market fluctuation.
Example 2-for-1 forward stock split:
If you owned 1 share of Example Company valued at $150 per share, your investment would have a total value of $150 (price per share x amount of shares held). At the time the company completed the 2-for-1 forward split, you would now own 2 shares valued at $75 per share, resulting in a total value invested of $150. The total value invested remains the same regardless of the split.
To do the calculation for your own shares, use the following equation: shares previously owned x 2 = new amount of shares held.
This corporate action affects all shareholders holding MKC at the time of the split. Note that after this event this stock’s historical graphs were updated to take the split into account.
If you have questions about corporate actions that affect shares you are holding, we recommend contacting the appropriate company’s investor relations team or visiting the investor relations page on their website for more information.
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What this means for shareholders