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Video: What is a Stock Split?
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Nova Lifestyle is a holding company. Through its subsidiaries, Co. is a designer and marketer of contemporary styled residential and commercial furniture. Co.'s family of brands includes Diamond Sofa (www.diamondsofa.com). Co.'s product lines feature upholstered, wood and metal-based furniture pieces. Co. classifies its products by room, designation or series, such as living room, dining room, bedroom and home office series, and by category or product types such as sofas, chairs, dining tables, beds, entertainment consoles, cabinets and cupboards. Co.'s product offerings consist of a mix of furnishings designed by Co., and sourced from third party manufacturers. According to our NVFY split history records, Nova Lifestyle has had 2 splits. | |
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Nova Lifestyle (NVFY) has 2 splits in our NVFY split history database. The first split for NVFY took place on December 23, 2019. This was a 1 for 5 reverse split, meaning for each 5 shares of NVFY 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. NVFY's second split took place on May 24, 2023. This was a 1 for 5 reverse split, meaning for each 5 shares of NVFY owned pre-split, the shareholder now owned 1 share. For example, a 200 share position pre-split, became a 40 share position following the split.
When a company such as Nova Lifestyle 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 NVFY split history from start to finish, an original position size of 1000 shares would have turned into 40 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Nova Lifestyle shares, starting with a $10,000 purchase of NVFY, presented on a split-history-adjusted basis factoring in the complete NVFY split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/22/2014 |
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End date: |
04/19/2024 |
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Start price/share: |
$129.00 |
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End price/share: |
$2.76 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-97.86% |
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Average Annual Total Return: |
-31.92% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$213.89 |
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Years: |
10.00 |
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Date |
Ratio |
12/23/2019 | 1 for 5 | 05/24/2023 | 1 for 5 |
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