Divide and Conquer

How does $2,100 become more than $1 million? An investor who bought 100 shares of Microsoft Corp. at the $21 offering price in March 1986 and held them would now have 7,200 shares worth nearly $1.2 million, adjusted for seven stock splits. By comparison, a $2,100 investment in the Standard & Poor’s 500 index in March 1986 would now be worth about $10,805, not counting dividends. And Microsoft marches on: The world’s largest software maker said Monday that it will split its stock 2 for 1 on March 26, its eighth split in 13 years, for holders of record March 12. The shares, which have more than doubled in the last year on record revenue, surged $5.63 on Monday to close at $161.88. Companies generally split their shares when they reach high levels, to make them more affordable to smaller investors. Microsoft’s quarterly closes and latest:

March 13, 1986, stock price, adjusted for seven subsequent splits: 39 cents

Sept. 21, 1987: 2-for-1 stock split

April 16, 1990: 2-for-1 stock split

June 27, 1991: 3-for-2 stock split

June 15, 1992: 3-for-2 stock split

May 23, 1994: 2-for-1 stock split

Dec. 9, 1996: 2-for-1 stock split

Feb. 23, 1998: 2-for-1 stock split

Monday close: $161.88

Sources: Bridge, Reuters