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Video: What is a Stock Split?
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LQR House is engaged in the supply, sales, marketing and distribution of the alcoholic beverages and other related products in the alcohol industry, including individual consumers, wholesalers and third-party alcohol brands. Co. acquires, builds, markets, and distributes brands through the Country Wine & Spirits Inc. website and other social media channels within Canada, Mexico and United States. According to our LQR split history records, LQR House has had 2 splits. | |
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LQR House (LQR) has 2 splits in our LQR split history database. The first split for LQR took place on November 30, 2023. This was a 1 for 60 reverse split, meaning for each 60 shares of LQR owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 16.6666666666667 share position following the split. LQR's second split took place on March 04, 2024. This was a 3 for 2 split, meaning for each 2 shares of LQR owned pre-split, the shareholder now owned 3 shares. For example, a 16.6666666666667 share position pre-split, became a 25 share position following the split.
When a company such as LQR House 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 LQR House 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 LQR split history from start to finish, an original position size of 1000 shares would have turned into 25 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into LQR House shares, starting with a $10,000 purchase of LQR, presented on a split-history-adjusted basis factoring in the complete LQR split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
08/11/2023 |
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End date: |
04/26/2024 |
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Start price/share: |
$120.00 |
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End price/share: |
$1.01 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.16% |
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Annualized Gain: |
-139.74% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$84.00 |
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Years: |
0.71 |
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Date |
Ratio |
11/30/2023 | 1 for 60 | 03/04/2024 | 3 for 2 |
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