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Video: What is a Stock Split?
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Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, including NASCAR, the 24 Hours of Le Mans endurance race and the associated FIA World Endurance Championship, INDYCAR, the British Touring Car Championship and others. Co. has classified its reportable operating segments into the development and publishing of interactive racing video games, entertainment content and services; and the organization and facilitation of esports tournaments, competitions and events for its licensed racing games as well as on behalf of third-party video game racing series and other video game publishers. According to our MSGM split history records, Motorsport Games has had 1 split. | |
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Motorsport Games (MSGM) has 1 split in our MSGM split history database. The split for MSGM took place on November 10, 2022. This was a 1 for 10 reverse split, meaning for each 10 shares of MSGM 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 Motorsport Games 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 MSGM 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 Motorsport Games shares, starting with a $10,000 purchase of MSGM, presented on a split-history-adjusted basis factoring in the complete MSGM split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
01/14/2021 |
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End date: |
04/25/2024 |
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Start price/share: |
$310.00 |
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End price/share: |
$2.52 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.19% |
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Average Annual Total Return: |
-76.98% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$81.25 |
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Years: |
3.28 |
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Date |
Ratio |
11/10/2022 | 1 for 10 |
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