ATLANTA -- The share owners of the Coca-Cola Co. today approved a two-for-one stock split and an increase from 5.6 billion to 11.2 billion in the number of authorized shares of the company's common stock.
The record date for the stock split is expected to be July 27, with new shares to be distributed on or about Aug. 10. Each share owner of record on the close of business on the record date will receive one additional share of common stock for each share held.
The split is the 11th in the stock's 92-year history and the first in 16 years. Answers to frequently asked questions about the stock split can be found on the "investors" section of the beverage giant's website, thecoca-colacompany.com/investors.
Coca-Cola's common stock began trading in 1919. Since its original listing, the stock has previously split 10 times -- first in 1927 and most recently in 1996. With all dividends reinvested annually, one share of common stock purchased for $40 in 1919 would be worth approximately $10.3 million today.
Companies split stocks when they believe their share price is too expensive or if it is trading far above similar companies' stocks. Stock splits can also help firms with liquidity because the stock price usually benefits from a bump immediately following the split.