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Video: What is a Stock Split?
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MFC Bancorp is a finance and supply chain company based in Canada. Co. is engaged in facilitating the working capital and other requirements of its customers. Co.'s business activities involve customized structured financial solutions and are supported by captive sources and products secured from third parties. Co. provides specialty banking services, focused on merchant banking and structured and trade finance, to its customers, suppliers and group members. Co. does business in multiple geographies and specializes in a wide range of industrial products such as metals, ceramics, minerals, various steel products and ferro-alloys and wood products. According to our MFCB split history records, MFCB has had 1 split. | |
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MFCB (MFCB) has 1 split in our MFCB split history database. The split for MFCB took place on July 14, 2017. This was a 1 for 5 reverse split, meaning for each 5 shares of MFCB owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 200 share position following the split.
When a company such as MFCB 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 MFCB 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 MFCB shares, starting with a $10,000 purchase of MFCB, presented on a split-history-adjusted basis factoring in the complete MFCB split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/25/2014 |
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End date: |
06/03/2019 |
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Start price/share: |
$37.25 |
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End price/share: |
$12.05 |
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Starting shares: |
268.46 |
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Ending shares: |
275.73 |
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Dividends reinvested/share: |
$0.90 |
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Total return: |
-66.77% |
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Average Annual Total Return: |
-19.40% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$3,322.08 |
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Years: |
5.11 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/25/2014 |
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End date: |
06/03/2019 |
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Start price/share: |
$37.25 |
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End price/share: |
$12.05 |
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Dividends collected/share: |
$0.90 |
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Total return: |
-65.23% |
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Average Annual Total Return: |
-18.68% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$3,476.53 |
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Years: |
5.11 |
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Date |
Ratio |
07/14/2017 | 1 for 5 |
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