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Video: What is a Stock Split?
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American Virtual Cloud Technologies through its Kandy Communications business (Kandy), is engaged as a provider of cloud-based enterprise services. It deploys a carrier grade proprietary cloud communication platform that supports unified communications as a service, communications platform as a service and contact center as a service for mid-market and enterprise customers across a proprietary multi-tenant cloud platform. The Kandy platform is based on a proprietary multi-tenant cloud platform that includes pre-built customer engagement tools, based on web real-time communications technology that enables frictionless communications. According to our AVCT split history records, AVCT has had 4 splits. | |
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AVCT (AVCT) has 4 splits in our AVCT split history database. The first split for AVCT took place on April 29, 1998. This was a 3 for 2
split, meaning for each 2
shares of AVCT owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. AVCT's second split took place on December 16, 1998. This was a 3 for 2
split, meaning for each 2
shares of AVCT owned pre-split, the shareholder now owned 3 shares. For example, a 1500 share position pre-split, became a 2250 share position following the split. AVCT's third split took place on February 22, 2000. This was a 3 for 2
split, meaning for each 2
shares of AVCT owned pre-split, the shareholder now owned 3 shares. For example, a 2250 share position pre-split, became a 3375 share position following the split. AVCT's 4th split took place on October 03, 2022. This was a 1 for 15 reverse split, meaning for each 15 shares of AVCT owned pre-split, the shareholder now owned 1 share. For example, a 3375 share position pre-split, became a 225 share position following the split.
When a company such as AVCT splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as AVCT 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 AVCT split history from start to finish, an original position size of 1000 shares would have turned into 225 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into AVCT shares, starting with a $10,000 purchase of AVCT, presented on a split-history-adjusted basis factoring in the complete AVCT split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
08/09/2017 |
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End date: |
01/19/2023 |
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Start price/share: |
$145.35 |
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End price/share: |
$0.60 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.59% |
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Average Annual Total Return: |
-63.51% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$41.13 |
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Years: |
5.45 |
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Date |
Ratio |
04/29/1998 | 3 for 2
| 12/16/1998 | 3 for 2
| 02/22/2000 | 3 for 2
| 10/03/2022 | 1 for 15 |
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