GM Split

One of the most active blue-chip stocks in the bull market has been General Motors. Its phenomenal 1949 earnings ($14.65 per share) and dividend ($8), plus a good first quarter in 1950, plus the news of G.M.’s five-year contract with the U.A.W., sent it to a 21-year high of 90¾ last week. This week G.M.’s directors took an action which will probably increase the stock’s turnover. They proposed that the 43,945,133 shares currently outstanding be split two for one.* If approved by the stockholders, the change would give G.M. the largest number of shares of any company in existence.

-It was the fifth split in G.M. history. The others August 1917, 5 for 1; February 1920, 10 for 1; (in March 1924 the stock was reduced 1 for 4); September 1927, 2 for 1; January 1929, 2½ for 1.