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Video: What is a Stock Split?
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Cootek Cayman is a holding company. Through its subsidiaries, Co. is a mobile internet company providing mobile applications including a portfolio of mobile applications. Co.'s mobile applications focus on three categories: online literature, which includes Fengdu Novel that provides users with free online novels; casual games, which series of self-developed casual games, include simulation games such as Farm Hero and Idle Land King Tycoon, puzzle games such as Hi Hamster, and educational games such as Puzzle No. 1 and Idiom Hero; and scenario-based mobile apps, which include Walk Walk, a fitness application and healthcare applications, such as Drink Water Reminder and Happy Jogging. According to our CTK stock split history records, CTK has had 2 splits. | |
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CTK (CTK) has 2 splits in our CTK stock split history database. The first split for CTK took place on May 18, 1992. This was a 2 for 1
split, meaning for each share of CTK 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. CTK's second split took place on May 09, 2022. This was a 1 for 13 reverse split, meaning for each 13 shares of CTK owned pre-split, the shareholder now owned 1 share. For example, a 2000 share position pre-split, became a 153.846153846154 share position following the split.
When a company such as CTK 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 CTK 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 CTK stock split history from start to finish, an original position size of 1000 shares would have turned into 153.846153846154 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into CTK shares, starting with a $10,000 purchase of CTK, presented on a split-history-adjusted basis factoring in the complete CTK stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
10/01/2018 |
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End date: |
05/25/2022 |
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Start price/share: |
$124.80 |
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End price/share: |
$0.91 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.27% |
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Average Annual Total Return: |
-74.04% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$72.88 |
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Years: |
3.65 |
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Date |
Ratio |
05/18/1992 | 2 for 1
| 05/09/2022 | 1 for 13 |
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