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Video: What is a Stock Split?
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IT Tech Packaging, Inc., formerly Orient Paper, Inc. is a holding company for the Hebei Baoding Orient Paper Milling Co. Limited (Orient Paper HB), a producer and distributor of paper products in China. Co. is engaged in production and distribution of four categories of paper products: corrugating medium paper (CMP), offset printing paper, digital photo paper and tissue paper products. Co., through Baoding Shengde Paper Co., Ltd. (Orient Paper Shengde), is engaged in production and distribution of digital photo paper. Co. operates through two segments: Orient Paper HB, which produces printing paper and CMP, and Orient Paper Shengde, which produces digital photo paper. According to our ITP split history records, IT Tech Packaging has had 2 splits. | |
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IT Tech Packaging (ITP) has 2 splits in our ITP split history database. The first split for ITP took place on June 14, 1996. This was a 2 for 1
split, meaning for each share of ITP owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. ITP's second split took place on July 08, 2022. This was a 1 for 10 reverse split, meaning for each 10 shares of ITP owned pre-split, the shareholder now owned 1 share. For example, a 2000 share position pre-split, became a 200 share position following the split.
When a company such as IT Tech Packaging 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 IT Tech Packaging 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 ITP split history from start to finish, an original position size of 1000 shares would have turned into 200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into IT Tech Packaging shares, starting with a $10,000 purchase of ITP, presented on a split-history-adjusted basis factoring in the complete ITP split history.

Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
07/21/2015 |
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End date: |
07/18/2025 |
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Start price/share: |
$15.00 |
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End price/share: |
$0.20 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-98.67% |
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Average Annual Total Return: |
-35.06% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$133.39 |
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Years: |
10.00 |
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Date |
Ratio |
06/14/1996 | 2 for 1
| 07/08/2022 | 1 for 10 |
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