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Video: What is a Stock Split?
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Takung Art is a holding company. Through its subsidiaries, Co. operates an electronic online platform located at http://en.takungae.com/ for artists, art dealers and art investors to provide and trade in ownership units over artwork. Co.'s platform is an electronic trading system, consisting of host computers, client-side terminals and an interconnected communication system. Co.'s trading system supports the trading and payment/settlement of artwork ownership units. It is an electronic platform developed by a third party software development company and customized for Co., consisting of a matching system, a transaction monitoring system, an account managing system and a settlement system. According to our MI split history records, NFT has had 3 splits. | |
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NFT (MI) has 3 splits in our MI split history database. The first split for MI took place on June 01, 1993. This was a 3 for 1
split, meaning for each share of MI owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 3000 share position following the split. MI's second split took place on June 17, 2002. This was a 2 for 1 split, meaning for each share of MI owned pre-split, the shareholder now owned 2 shares. For example, a 3000 share position pre-split, became a 6000 share position following the split. MI's third split took place on April 12, 2024. This was a 1 for 50 reverse split, meaning for each 50 shares of MI owned pre-split, the shareholder now owned 1 share. For example, a 6000 share position pre-split, became a 120 share position following the split.
When a company such as NFT 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 NFT 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 MI split history from start to finish, an original position size of 1000 shares would have turned into 120 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into NFT shares, starting with a $10,000 purchase of MI, presented on a split-history-adjusted basis factoring in the complete MI split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
11/27/2015 |
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End date: |
04/24/2024 |
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Start price/share: |
$112.50 |
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End price/share: |
$4.12 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-96.34% |
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Average Annual Total Return: |
-32.51% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$366.22 |
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Years: |
8.41 |
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Date |
Ratio |
06/01/1993 | 3 for 1
| 06/17/2002 | 2 for 1 | 04/12/2024 | 1 for 50 |
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