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Video: What is a Stock Split?
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SIPN (SIPN) has 1 split in our SIPN split history database. The split for SIPN took place on May 24, 2007. This was a 1 for 1000 reverse split, meaning for each 1000 shares of SIPN owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 1 share position following the split.
When a company such as SIPN 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 SIPN split history from start to finish, an original position size of 1000 shares would have turned into 1 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into SIPN shares, starting with a $10,000 purchase of SIPN, presented on a split-history-adjusted basis factoring in the complete SIPN split history.
SIPN -- use the split history when considering split-adjusted past price performance. |
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Date |
Ratio |
05/24/2007 | 1 for 1000 |
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