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Video: What is a Stock Split?
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Scorpio Bulkers is a holding company. Through its subsidiaries, Co. is engaged as a shipping company that owns and operates newbuilding drybulk carriers with specifications and carrying capacities of greater than 30,000 deadweight tons (dwt). All of Co.'s owned vessels have carrying capacities of greater than 60,000 dwt. Co.'s vessels transport a range of major and minor bulk commodities, including ores, coal, grains, and fertilizers, along worldwide shipping routes, and are employed primarily in the spot market or in spot market-oriented pools of similarly sized vessels. Co. is organized by vessel type into two operating segments: Ultramax Operations; and Kamsarmax Operations. According to our SALT split history records, SALT has had 3 splits. | |
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SALT (SALT) has 3 splits in our SALT split history database. The first split for SALT took place on December 31, 2015. This was a 1 for 12 reverse split, meaning for each 12 shares of SALT owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 83.3333333333333 share position following the split. SALT's second split took place on November 14, 2019. This was a 1076 for 1000 split, meaning for each 1000 shares of SALT owned pre-split, the shareholder now owned 1076 shares. For example, a 83.3333333333333 share position pre-split, became a 89.6666666666667 share position following the split. SALT's third split took place on April 07, 2020. This was a 1 for 10 reverse split, meaning for each 10 shares of SALT owned pre-split, the shareholder now owned 1 share. For example, a 89.6666666666667 share position pre-split, became a 8.96666666666667 share position following the split.
When a company such as SALT 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 SALT 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 SALT split history from start to finish, an original position size of 1000 shares would have turned into 8.96666666666667 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into SALT shares, starting with a $10,000 purchase of SALT, presented on a split-history-adjusted basis factoring in the complete SALT split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/28/2014 |
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End date: |
02/05/2021 |
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Start price/share: |
$981.40 |
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End price/share: |
$20.03 |
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Starting shares: |
10.19 |
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Ending shares: |
10.67 |
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Dividends reinvested/share: |
$2.04 |
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Total return: |
-97.86% |
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Average Annual Total Return: |
-43.29% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$213.60 |
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Years: |
6.78 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/28/2014 |
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End date: |
02/05/2021 |
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Start price/share: |
$981.40 |
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End price/share: |
$20.03 |
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Dividends collected/share: |
$2.04 |
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Total return: |
-97.75% |
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Average Annual Total Return: |
-42.86% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$224.83 |
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Years: |
6.78 |
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Date |
Ratio |
12/31/2015 | 1 for 12 | 11/14/2019 | 1076 for 1000 | 04/07/2020 | 1 for 10 |
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