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Video: What is a Stock Split?
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Hudson Executive Investment is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Co.'s intial focus for a business combination is across two broad industry sectors: financial services, with a focus on financial technology ("FinTech"); and healthcare, including healthcare information technology, services and products. According to our HEC split history records, HEC has had 1 split. | |
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HEC (HEC) has 1 split in our HEC split history database. The split for HEC took place on November 08, 2000. This was a 1 for 10 reverse split, meaning for each 10 shares of HEC 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.
When a company such as HEC 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 HEC split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into HEC shares, starting with a $10,000 purchase of HEC, presented on a split-history-adjusted basis factoring in the complete HEC split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
07/31/2020 |
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End date: |
06/22/2021 |
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Start price/share: |
$9.80 |
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End price/share: |
$8.52 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-13.06% |
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Annualized Gain: |
-14.62% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$8,694.00 |
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Years: |
0.89 |
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Date |
Ratio |
11/08/2000 | 1 for 10 |
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