This is what their lives were like after Khloe and Lamar divorced.
"Split adjusted" refers to the new earnings per share numbers after a stock split. So if a company had $200 million in earnings and 50 million shares outstanding, then it had $4 a share in earnings. The stock was trading for $160 a share, and the company decided to do a share split to make it less costly for buyers of its stock to buy a round lot of 100 shares.
So the new split was a fourfer. That is, for each unit of old stock, you would receive 4 shares of new stock. The company, post-split, had 200 million shares outstanding and the same $200 million in earnings, now earning $1 a share, instead of $4. And the stock, which was trading for $160 a share, should now drop 4x to trade at $40 a share. These are all of the post-split, split adjusted numbers.
Now go out there and buy 100 shares, and make the Board proud.
Related or Semi-related Video
Finance: What is a Stock Split: Forward ...1 Views
Finance Allah Shmoop what is a stock split forward and
reverse Well there are more ways of slicing dicing and
reorganizing the structure of the ownership pie you bought into
when you acquired those three hundred shares of whatever dot
com And in the background you hear the rhythmic pounding
of leather shoes on wood floor the sound of retail
investors jumping up and down with excitement when a stock
splits This is very strange to professional investors because when
a stock splits it is in fact a mathematically neutral
event neither good nor bad Think about it like the
apple your grandma had divided in half for you for
easy gumming you know when you were not quite two
years old Then when you grew six months older and
who had a tooth or two she split it into
four pieces instead Cause for celebration jumping up and down
headlines No not at all So why do company split
their stock in the first place But mainly to make
it easier to buy for retail buyers Famously Disney has
always had a very large percentage of its ownership ownership
of its shares owned by small fish retail buyers and
buyers liketo buy in round lots or they have to
pay all kinds of extra commission fees in normal brokered
setups Note that around Lot comes in units of one
hundred shares So let's think about that hundred shares Number
one hundred shares is the minimum you khun by to
form around lot than if Disney were trading it well
on I'll say a five hundred dollars a share Well
the minimum round lot unit that a retail investor would
have to spend toe by their single round lot slice
of the Magic Kingdom ESPN ABC and beyond Well that
would be one hundred times five hundred or fifty thousand
bucks And that's a lot of dough for a plumber
a teacher up a dia trist even a mob boss
Okay well and not a very successful mob boss Yeah
sorry Jimmy Walnuts were just keeping really so Disney has
split its stock a bunch of times It wants to
appeal to the masses of retail investors who love their
product Will Google has done the office it Google may
or may not have a lot of retail investors but
they just don't want to deal with them The company
has insular management who has super voting stock which is
owned mostly by the founders and a kind of Silicon
Valley arrogance even more pungent than what whips up here
from Hollywood So when GOOG stock kisses five hundred bucks
a share or a thousand dollars a share while the
company is very happy to limit their ownership high to
investors who can afford to invest at least in a
fifty or a hundred grand in just one stock So
here's the math simplified whatever dot com has one hundred
million shares outstanding and this year will conveniently earn two
hundred million dollars That's two bucks a share If you're
keeping track its stock currently trays at fifty dollars a
share And the company wants to make it easier for
the less wealthy to be able to buy slices of
its pie So it forward splits its shares to for
one But what does that mean Well all of a
sudden the number of shares immediately doubles from one hundred
million to two hundred million The company will still earn
the same two hundred million dollars this year But now
instead of earning two dollars a share that two hundred
million dollars over the hundred million shares now they'll earn
two hundred million dollars over two hundred million shares or
a dollar a share So what Fifty dollars a share
They were trading in twenty five times the two dollars
a share earnings And mathematically they should still trade at
twenty five times earnings Nothing else has changed Holding now
earnings are a dollar share instead of two dollars So
the moment the forward stock split is effected while the
stock should notionally get cut exactly in half But in
practice this does not usually happen In fact when companies
announced stock splits their stocks usually go up Why Because
it's on ly what companies feel confident in their business
that they choose to announce a forward stock split like
this Think about the opposite case If loser dot com
was earning only forty cents a share trading it ten
times earnings and they were worried that their forty cents
a share in earnings would go to a few pennies
a share next steer under a failed business cycle like
a lost lawsuit or somehow they got Amazon Well their
stock might then go from trading at four bucks a
share that ten times the forty cents number down toe
under a dollar a share and if it exists under
a dollar a share for very long with a company
is for forcibly delisted from pretty much whatever exchange it
was then trading on in that case well the company
that has to do a reverse split to protect their
share price and keep it well above that minimum dollars
Shared delisting bomb The math right company here is a
loser dot com They have one hundred million shares outstanding
and will earn forty million dollars this year or forty
cents a share at ten times earnings The stock trades
for four bucks and if next year it signals that
it will on Ly earn a dime and it expects
to continue holding its ten times earnings multiple Well then
the stock is at risk for kissing that dollar And
if it does and it gets delisted well it's likely
that all the current owners of the stock will dump
it because their mutual funds aren't allowed to own pink
sheet investments or other off exchange things And that would
be a disaster for the company seeking any kind of
liquidity or ability to turn ownership into cash I eat
the management would no longer be able to sell stock
and buy Porsche is to avoid the black smoldering hole
in the ground Loser dot com then does a reverse
four for one split such that a hundred million shares
outstanding now go to only being twenty five million and
a dime A share projected for next year becomes forty
cents and it's likely that the four bucks a share
Stock III words trading today becomes sixteen dollars all else
being equal So yeah that's forward and reverse stock splits
In a nutshell And while speaking of nuts if you
fail to pay Jimmy well nuts when he's shaking you
down he has a very different idea of forward and 00:05:50.948 --> [endTime] reverse split
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