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Video: What is a Stock Split?
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DARA BioSciences is a pharmaceutical company primarily focused on the commercialization of oncology treatment and supportive care pharmaceutical products. Co.'s primary focus is on the commercialization of the following oncology treatment and oncology supportive care pharmaceutical products: Gelclair, which is an U.S. Food and Drug Administration (FDA)-cleared product indicated for the management and relief of pain due to oral mucositis; Soltamox, which is an FDA-approved oral liquid solution of tamoxifen citrate primarily used to treat breast cancer; and two Mission products, which are Ferralet 90 (for anemia), and Aquoral (for cancer related dry month). According to our DARA split history records, DARA has had 3 splits. | |
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DARA (DARA) has 3 splits in our DARA split history database. The first split for DARA took place on February 13, 2008. This was a 1 for 40 reverse split, meaning for each 40 shares of DARA owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 25 share position following the split. DARA's second split took place on February 12, 2008. DARA's third split took place on February 10, 2014. This was a 1 for 5 reverse split, meaning for each 5 shares of DARA owned pre-split, the shareholder now owned 1 share. For example, a 25 share position pre-split, became a 5 share position following the split.
When a company such as DARA 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 DARA split history from start to finish, an original position size of 1000 shares would have turned into 5 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into DARA shares, starting with a $10,000 purchase of DARA, presented on a split-history-adjusted basis factoring in the complete DARA split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/29/2014 |
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End date: |
12/07/2015 |
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Start price/share: |
$1.79 |
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End price/share: |
$0.88 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-50.84% |
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Average Annual Total Return: |
-35.69% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$4,916.66 |
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Years: |
1.61 |
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Date |
Ratio |
02/13/2008 | 1 for 40 | 02/12/2008 | 1 for 1 | 02/10/2014 | 1 for 5 |
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