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Video: What is a Stock Split?
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Senmiao Technology is a holding company. Via its subsidiaries, Co. facilitates automobile transaction and related services focusing on the ride-hailing industry in People's Republic of China. Co.'s Automobile Transaction and Related Services are comprised of facilitation of automobile transaction and financing where it connects the drivers to financial institutions to buy, or get financing on the purchase of, cars to be used to provide ride-hailing services; automobile sales where it procures new cars from dealerships and sells them to its customers in the automobile financing facilitation business; automobile operating lease where it provides car rental services and automobile financing. According to our AIHS split history records, Senmiao Technology has had 1 split. | |
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Senmiao Technology (AIHS) has 1 split in our AIHS split history database. The split for AIHS took place on April 06, 2022. This was a 1 for 10 reverse split, meaning for each 10 shares of AIHS owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 100 share position following the split.
When a company such as Senmiao Technology 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 AIHS split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Senmiao Technology shares, starting with a $10,000 purchase of AIHS, presented on a split-history-adjusted basis factoring in the complete AIHS split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
03/20/2018 |
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End date: |
05/07/2024 |
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Start price/share: |
$51.60 |
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End price/share: |
$0.80 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-98.45% |
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Average Annual Total Return: |
-49.28% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$155.13 |
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Years: |
6.14 |
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Date |
Ratio |
04/06/2022 | 1 for 10 |
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