Stock Split Frequently Asked Questions

The Board of Directors makes the decision for any stock split. The most current split was a 2-for-1 common stock split announced on January 16, 2003. The stock will commence trading at the new split price February 18, 2003. This was our ninth stock split since going public March 13, 1986. Read the press release: Microsoft Declares Annual Dividend and Announces Two-for-One Split on Common Stock

The most recent split was a 2-for-1 common stock split announced on January 16, 2003. The stock traded at the new split price on February 18, 2003. This was Microsoft's ninth stock split since going public March 13, 1986. For more information, read the press release: Microsoft Declares Annual Dividend and Announces Two-for-One Split on Common Stock. After this most recent split, one original share equals 288 shares.

This chart summarizes Microsoft's nine common stock splits since the initial public offering on March 13, 1986:

*Type of split:
2 for 1 = One additional share for every share held (multiply the number of shares by 2 for a new total)
3 for 2 = One additional share for every two shares held (multiply the number of shares by 1.5 for a new total)

A 2-for-1 split means the investor will have twice as many shares as he had before, at half the market price. Here’s an example: As of the record date (January 27, 2003) if an investor owns 100 shares of MSFT and the market price is $50.00/share, that investor’s total value is $5,000.00. After the split, the investor will have 200 shares of stock, but the market price will be approximately $25.00/share. The investor’s total investment value in MSFT remains the same at $5,000.00 until the stock price moves up or down.

The decision to split the stock was made by Microsoft’s Board of Directors, based on a desire to make our stock more accessible to a broader range of investors.

This is the ninth time the company has split the stock since Microsoft went public back in March 1986. One original share will equal 288 shares after this split is effective.