Stock Markets Exposed
How was money invested in microsoft in the 90s able to make people large fortunes?
I think I understand the market, but I can't figure this out. People always say that 10,000 invested in micrsoft in the early 90s was worth millions 10 years later (or some variation of that). What makes this happen. From what I have looked up about the company, the stock peaked at 60$ per share. So if in the 10 years, the stock went from 20ish dollars to 60ish dollars, where did all the money come from?
Public Comments
- Did it split during that time? Probably. Plus dividends.
- the stock has split at least 3 times i believe and that helps a ton
- How can you say you understand the market, when something as basic as a stock split eludes you... Better go back to school.. Microsoft has split 9 times since 1986.. So if you bought 100 shares at the IPO for $28, it cost $2800. Then it split and went up and split and went up etc etc etc..so that the $28.71 price today needs to be multiplied by the additional shares you would have received.. Split Dates - Split Amounts - Shares you now own 09/87 - 2 for 1 - 200 04/90 - 2 for 1 - 400 06/91 - 3 for 2 - 600 06/92 - 3 for 2 - 900 05/94 - 2 for 1 - 1800 12/96 - 2 for 1 - 3600 02/98 - 2 for 1 - 7200 03/99 - 2 for 1 - 14400 02/03 - 2 for 1 - 28800 28800 times $28 = $826848 as of today's close from investment of $2800. Hope that helps you understand the market a little better.. Good Luck ED
