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Video: What is a Stock Split?
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Collier Creek Holdings is a blank check company. According to our CCH split history records, CCH has had 2 splits. | |
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CCH (CCH) has 2 splits in our CCH split history database. The first split for CCH took place on May 26, 2000. This was a 1 for 10
reverse split, meaning for each 10
shares of CCH 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. CCH's second split took place on November 21, 2007. This was a 3 for 2 split, meaning for each 2 shares of CCH owned pre-split, the shareholder now owned 3 shares. For example, a 100 share position pre-split, became a 150 share position following the split.
When a company such as CCH 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 CCH 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 CCH split history from start to finish, an original position size of 1000 shares would have turned into 150 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into CCH shares, starting with a $10,000 purchase of CCH, presented on a split-history-adjusted basis factoring in the complete CCH split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
11/26/2018 |
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End date: |
08/28/2020 |
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Start price/share: |
$9.63 |
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End price/share: |
$16.34 |
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Dividends collected/share: |
$0.00 |
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Total return: |
69.68% |
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Average Annual Total Return: |
35.19% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$16,966.86 |
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Years: |
1.75 |
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Date |
Ratio |
05/26/2000 | 1 for 10
| 11/21/2007 | 3 for 2 |
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