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Video: What is a Stock Split?
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Turquoise Hill Resources is a mining company focused on the operation and further development of the Oyu Tolgoi copper-gold mine in southern Mongolia, which is Co.'s principal and only material mineral resource property. Oyu Tolgoi is held through a 66% interest in Oyu Tolgoi LLC; the remaining 34% interest is held by Erdenes MGL LLC. According to our TRQ split history records, TRQ has had 2 splits. | |
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TRQ (TRQ) has 2 splits in our TRQ split history database. The first split for TRQ took place on December 04, 2013. This was a 1299 for 1000 split, meaning for each 1000 shares of TRQ owned pre-split, the shareholder now owned 1299 shares. For example, a 1000 share position pre-split, became a 1299 share position following the split. TRQ's second split took place on October 26, 2020. This was a 1 for 10 reverse split, meaning for each 10 shares of TRQ owned pre-split, the shareholder now owned 1 share. For example, a 1299 share position pre-split, became a 129.9 share position following the split.
When a company such as TRQ 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 TRQ 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 TRQ split history from start to finish, an original position size of 1000 shares would have turned into 129.9 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into TRQ shares, starting with a $10,000 purchase of TRQ, presented on a split-history-adjusted basis factoring in the complete TRQ split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/22/2014 |
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End date: |
12/15/2022 |
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Start price/share: |
$38.20 |
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End price/share: |
$31.41 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-17.77% |
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Average Annual Total Return: |
-2.24% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$8,219.53 |
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Years: |
8.65 |
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Date |
Ratio |
12/04/2013 | 1299 for 1000 | 10/26/2020 | 1 for 10 |
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