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Video: What is a Stock Split?
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Prospect Global Resources is a development stage company engaged in the exploration and development of a potash mine in the Holbrook Basin of eastern Arizona. Co. holds its interest and controls the Holbrook Project through its wholly owned subsidiary, American West Potash LLC (AWP). Through AWP, Co. holds potash exploration permits on 38 Arizona state sections, owns the mineral rights on eight private sections and holds leases for the mineral rights on 101 private sections. The Holbrook Project area is located within the Holbrook Basin and is situated entirely within Apache County in northeastern Arizona. According to our PGRX split history records, PGRX has had 1 split. | |
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PGRX (PGRX) has 1 split in our PGRX split history database. The split for PGRX took place on September 04, 2013. This was a 1 for 50 reverse split, meaning for each 50 shares of PGRX owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 20 share position following the split.
When a company such as PGRX 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 PGRX split history from start to finish, an original position size of 1000 shares would have turned into 20 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into PGRX shares, starting with a $10,000 purchase of PGRX, presented on a split-history-adjusted basis factoring in the complete PGRX split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/29/2014 |
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End date: |
11/30/2018 |
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Start price/share: |
$0.90 |
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End price/share: |
$0.01 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-98.89% |
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Average Annual Total Return: |
-62.47% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$111.08 |
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Years: |
4.59 |
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Date |
Ratio |
09/04/2013 | 1 for 50 |
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