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Video: What is a Stock Split?
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The Company is a regional manufacturer of finished and semi-finished non-ferrous products based on copper aluminum and related alloys as well as a manufacturer of flexible packaging products for use in the mass consumer market. According to our MAD split history records, MAD has had 1 split. | |
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MAD (MAD) has 1 split in our MAD split history database. The split for MAD took place on May 12, 2003. This was a 1 for 10 reverse split, meaning for each 10 shares of MAD 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 MAD 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 MAD 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 MAD shares, starting with a $10,000 purchase of MAD, presented on a split-history-adjusted basis factoring in the complete MAD split history.
MAD -- use the split history when considering split-adjusted past price performance. |
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Date |
Ratio |
05/12/2003 | 1 for 10 |
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