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Video: What is a Stock Split?
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The Company is engaged in the operation development and franchising of full service casual dining restaurants. According to our SNS split history records, SNS has had 4 splits. | |
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SNS (SNS) has 4 splits in our SNS split history database. The first split for SNS took place on January 02, 1997. This was a 11 for 10 split, meaning for each 10 shares of SNS owned pre-split, the shareholder now owned 11 shares. For example, a 1000 share position pre-split, became a 1100 share position following the split. SNS's second split took place on December 29, 1998. This was a 5 for 4 split, meaning for each 4 shares of SNS owned pre-split, the shareholder now owned 5 shares. For example, a 1100 share position pre-split, became a 1375 share position following the split. SNS's third split took place on December 27, 1999. This was a 11 for 10 split, meaning for each 10 shares of SNS owned pre-split, the shareholder now owned 11 shares. For example, a 1375 share position pre-split, became a 1512.5 share position following the split. SNS's 4th split took place on December 21, 2009. This was a 1 for 20 reverse split, meaning for each 20 shares of SNS owned pre-split, the shareholder now owned 1 share. For example, a 1512.5 share position pre-split, became a 75.625 share position following the split.
When a company such as SNS 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 SNS 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 SNS split history from start to finish, an original position size of 1000 shares would have turned into 75.625 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into SNS shares, starting with a $10,000 purchase of SNS, presented on a split-history-adjusted basis factoring in the complete SNS split history.
SNS -- use the split history when considering split-adjusted past price performance. |
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Date |
Ratio |
01/02/1997 | 11 for 10 | 12/29/1998 | 5 for 4 | 12/27/1999 | 11 for 10 | 12/21/2009 | 1 for 20 |
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