 |
Video: What is a Stock Split?
|
 |
Salesforce is engaged in customer relationship management technology. Co.'s Customer 360 service offerings include: Sales, which enables sales teams of companies to manage and automate their sales process; Service, which enables companies to deliver customer service and support; Platform, which enables companies to build business apps; Marketing, which enables companies to plan, personalize and optimize one-to-one customer marketing journeys; Commerce, which enables brands to unify the customer experience; Analytics, which provides customers an end-to-end analytics solution serving a range of enterprise use cases; and Integration, which connects data from various system. According to our Salesforce stock split history records, Salesforce has had 2 splits. | |
 |

Salesforce (CRM) has 2 splits in our Salesforce stock split history database. The first split for CRM took place on July 06, 2000. This was a 1 for 20
reverse split, meaning for each 20
shares of CRM owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 50 share position following the split. CRM's second split took place on April 18, 2013. This was a 4 for 1 split, meaning for each share of CRM owned pre-split, the shareholder now owned 4 shares. For example, a 50 share position pre-split, became a 200 share position following the split.
When a company such as Salesforce splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as Salesforce conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the Salesforce stock split history from start to finish, an original position size of 1000 shares would have turned into 200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Salesforce shares, starting with a $10,000 purchase of CRM, presented on a split-history-adjusted basis factoring in the complete Salesforce stock split history.

Growth of $10,000.00
Without Dividends Reinvested
|
Start date: |
05/29/2013 |
|
End date: |
05/26/2023 |
|
Start price/share: |
$41.93 |
|
End price/share: |
$215.44 |
|
Dividends collected/share: |
$0.00 |
|
Total return: |
413.81% |
|
Average Annual Total Return: |
17.79% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$51,391.28 |
|
Years: |
10.00 |
|
|
 |
Date |
Ratio |
07/06/2000 | 1 for 20
| 04/18/2013 | 4 for 1 |
|
 |