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Video: What is a Stock Split?
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Spire Global is a newly incorporated blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Co.'s primary focus is to identify a prospective target business that provides expertise and technology to U.S. government customers in support of their national security, intelligence and defense missions. According to our SPIR split history records, Spire Global has had 2 splits. | |
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Spire Global (SPIR) has 2 splits in our SPIR split history database. The first split for SPIR took place on December 26, 2000. This was a 2 for 1 split, meaning for each share of SPIR owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. SPIR's second split took place on August 31, 2023. This was a 1 for 8 reverse split, meaning for each 8 shares of SPIR owned pre-split, the shareholder now owned 1 share. For example, a 2000 share position pre-split, became a 250 share position following the split.
When a company such as Spire Global 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 Spire Global 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 SPIR split history from start to finish, an original position size of 1000 shares would have turned into 250 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Spire Global shares, starting with a $10,000 purchase of SPIR, presented on a split-history-adjusted basis factoring in the complete SPIR split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
11/03/2020 |
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End date: |
04/18/2024 |
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Start price/share: |
$77.60 |
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End price/share: |
$9.83 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-87.33% |
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Average Annual Total Return: |
-45.01% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$1,266.87 |
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Years: |
3.45 |
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Date |
Ratio |
12/26/2000 | 2 for 1 | 08/31/2023 | 1 for 8 |
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