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 Video: What is a Stock Split?
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| A pharmaceutical company focused on developing and commercializing novel therapeutic products for the treatment of chronic diseases. According to our AVN split history records, AVN has had 1 split. | |
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AVN (AVN) has 1 split in our AVN split history database. The split for AVN took place on January 18, 2006. This was a 1 for 4 reverse split, meaning for each 4 shares of AVN owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 250 share position following the split.
When a company such as AVN 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 AVN split history from start to finish, an original position size of 1000 shares would have turned into 250 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into AVN shares, starting with a $10,000 purchase of AVN, presented on a split-history-adjusted basis factoring in the complete AVN split history.
AVN -- use the split history when considering split-adjusted past price performance. |
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| Date |
Ratio |
| 01/18/2006 | 1 for 4 |
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