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Video: What is a Stock Split?
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Farmmi is a holding company. Through its subsidiaries, Co. is a supplier of agricultural products. Co. processes and/or sells four categories of agricultural products: Shiitake mushrooms, Mu Er mushrooms, cotton, corn, other edible fungi, and other agricultural products. The Shiitake is a variety of mushroom that originated from Eastern Asia. Mu Er is a variety of mushroom that is dark brown to black and native to Asia and some Pacific islands. For the other edible fungi, Co. processes and sells other edible fungi from time to time, such as bamboo fungi and agrocybe aegerila. For the other agricultural products, Co. processes and packages all of the dried edible fungi on its own. According to our Farmmi stock split history records, Farmmi has had 2 splits. | |
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Farmmi (FAMI) has 2 splits in our Farmmi stock split history database. The first split for FAMI took place on May 31, 2022. This was a 1 for 25 reverse split, meaning for each 25 shares of FAMI owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 40 share position following the split. FAMI's second split took place on September 25, 2023. This was a 1 for 8 reverse split, meaning for each 8 shares of FAMI owned pre-split, the shareholder now owned 1 share. For example, a 40 share position pre-split, became a 5 share position following the split.
When a company such as Farmmi 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 Farmmi stock split history from start to finish, an original position size of 1000 shares would have turned into 5 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Farmmi shares, starting with a $10,000 purchase of FAMI, presented on a split-history-adjusted basis factoring in the complete Farmmi stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
02/20/2018 |
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End date: |
04/24/2024 |
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Start price/share: |
$1,210.00 |
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End price/share: |
$0.87 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.93% |
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Average Annual Total Return: |
-69.03% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$7.18 |
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Years: |
6.18 |
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Date |
Ratio |
05/31/2022 | 1 for 25 | 09/25/2023 | 1 for 8 |
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