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 Video: What is a Stock Split?
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| ARCA biopharma is a biopharmaceutical company focused on developing genetically-targeted therapies for cardiovascular diseases. Co.'s primary product candidate, Gencaro™ (bucindolol hydrochloride), is a pharmacogenetically-targeted beta-adrenergic receptor antagonist with mild vasodilator properties that Co. is developing to treat cardiovascular disease, focusing on atrial fibrillation in patients with chronic heart failure. Co. also has pharmacogenetic and other patent rights to drug candidates that have potential indications in cardiovascular disease, oncology and other therapeutic areas. According to our ABIO split history records, ARCA biopharma has had 4 splits. | |
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ARCA biopharma (ABIO) has 4 splits in our ABIO split history database. The first split for ABIO took place on January 28, 2009. This was a 1 for 20 reverse split, meaning for each 20 shares of ABIO 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. ABIO's second split took place on March 05, 2013. This was a 1 for 6 reverse split, meaning for each 6 shares of ABIO owned pre-split, the shareholder now owned 1 share. For example, a 50 share position pre-split, became a 8.33333333333333 share position following the split. ABIO's third split took place on September 04, 2015. This was a 1 for 7 reverse split, meaning for each 7 shares of ABIO owned pre-split, the shareholder now owned 1 share. For example, a 8.33333333333333 share position pre-split, became a 1.19047619047619 share position following the split. ABIO's 4th split took place on April 04, 2019. This was a 1 for 18 reverse split, meaning for each 18 shares of ABIO owned pre-split, the shareholder now owned 1 share. For example, a 1.19047619047619 share position pre-split, became a 0.0661375661375661 share position following the split.
When a company such as ARCA biopharma 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 ABIO split history from start to finish, an original position size of 1000 shares would have turned into 0.0661375661375661 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into ARCA biopharma shares, starting with a $10,000 purchase of ABIO, presented on a split-history-adjusted basis factoring in the complete ABIO split history.
Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
05/12/2011 |
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| End date: |
05/11/2021 |
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| Start price/share: |
$1,421.28 |
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| End price/share: |
$3.12 |
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| Dividends collected/share: |
$0.00 |
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| Total return: |
-99.78% |
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| Average Annual Total Return: |
-45.76% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$21.97 |
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| Years: |
10.01 |
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| Date |
Ratio |
| 01/28/2009 | 1 for 20 | | 03/05/2013 | 1 for 6 | | 09/04/2015 | 1 for 7 | | 04/04/2019 | 1 for 18 |
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