|
Video: What is a Stock Split?
|
|
World Gold Trust is a statutory trust. The Trust is authorized to issue an unlimited number of shares of beneficial interest. The beneficial interest in the Trust may be divided into one or more series. The Trust has established six separate series, one of which is operational. SPDR® Gold MiniSharessm Trust's investment objective is for its shares to reflect the performance of the price of gold bullion, less its expenses. The Trust is sponsored by WGC USA Asset Management Company, LLC. According to our GLDM split history records, World Gold Trust has had 2 splits. | |
|
World Gold Trust (GLDM) has 2 splits in our GLDM split history database. The first split for GLDM took place on February 22, 2022. GLDM's second split took place on February 23, 2022. This was a 1 for 2 reverse split, meaning for each 2 shares of GLDM owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 500 share position following the split.
When a company such as World Gold Trust 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 GLDM split history from start to finish, an original position size of 1000 shares would have turned into 500 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into World Gold Trust shares, starting with a $10,000 purchase of GLDM, presented on a split-history-adjusted basis factoring in the complete GLDM split history.
Growth of $10,000.00
Without Dividends Reinvested
|
Start date: |
06/27/2018 |
|
End date: |
04/24/2024 |
|
Start price/share: |
$25.04 |
|
End price/share: |
$45.99 |
|
Dividends collected/share: |
$0.00 |
|
Total return: |
83.67% |
|
Average Annual Total Return: |
10.99% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$18,365.85 |
|
Years: |
5.83 |
|
|
|
Date |
Ratio |
02/22/2022 | 1 for 1 | 02/23/2022 | 1 for 2 |
|
|