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Video: What is a Stock Split?
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Intrepid Potash, Inc. is a diversified mineral company providing potassium, magnesium, sulfur, salt and water products for agriculture, animal feed and the oil and gas industry. Its segments include potash, Trio and oilfield solutions. Co.'s products are potash, Trio and water, with sales also including salt, magnesium chloride, metal recovery salts and brines from mining processes. Potash is sold for agricultural fertilizer, industrial drilling fluids and animal feed. Trio is a specialty fertilizer with potassium, sulfate and magnesium. Water is primarily sold for industrial uses in oil and gas. Other offerings include caliche and right-of-way agreements. According to our IPI split history records, Intrepid Potash has had 1 split. | |
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Intrepid Potash (IPI) has 1 split in our IPI split history database. The split for IPI took place on August 14, 2020. This was a 1 for 10 reverse split, meaning for each 10 shares of IPI 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 Intrepid Potash 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 IPI 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 Intrepid Potash shares, starting with a $10,000 purchase of IPI, presented on a split-history-adjusted basis factoring in the complete IPI split history.

Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
06/23/2015 |
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End date: |
06/20/2025 |
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Start price/share: |
$111.10 |
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End price/share: |
$36.76 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-66.91% |
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Average Annual Total Return: |
-10.47% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$3,308.92 |
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Years: |
10.00 |
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Date |
Ratio |
08/14/2020 | 1 for 10 |
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