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Video: What is a Stock Split?
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PolyMet Mining is a development stage company. Through its 100%-owned subsidiary, Poly Met Mining, Inc., Co. is engaged in the exploration and development of natural resource properties. Co.'s primary mineral property and principal focus is the commercial development of its NorthMet Project (NorthMet), a polymetallic project in northeastern Minnesota, U.S., which hosts copper, nickel, cobalt, gold, silver, and platinum group metal mineralization. The NorthMet Project comprises two key elements: the NorthMet deposit and the Erie Plant. The NorthMet deposit is situated on mineral leases located in St. Louis County in northeastern Minnesota. The Erie Plant is west of the NorthMet deposit. According to our PLM split history records, PLM has had 2 splits. | |
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PLM (PLM) has 2 splits in our PLM split history database. The first split for PLM took place on May 31, 2013. This was a 1144 for 1000 split, meaning for each 1000 shares of PLM owned pre-split, the shareholder now owned 1144 shares. For example, a 1000 share position pre-split, became a 1144 share position following the split. PLM's second split took place on August 26, 2020. This was a 1 for 10 reverse split, meaning for each 10 shares of PLM owned pre-split, the shareholder now owned 1 share. For example, a 1144 share position pre-split, became a 114.4 share position following the split.
When a company such as PLM 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 PLM 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 PLM split history from start to finish, an original position size of 1000 shares would have turned into 114.4 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into PLM shares, starting with a $10,000 purchase of PLM, presented on a split-history-adjusted basis factoring in the complete PLM split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/24/2014 |
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End date: |
11/06/2023 |
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Start price/share: |
$12.70 |
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End price/share: |
$2.10 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-83.46% |
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Average Annual Total Return: |
-17.19% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$1,653.13 |
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Years: |
9.54 |
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Date |
Ratio |
05/31/2013 | 1144 for 1000 | 08/26/2020 | 1 for 10 |
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