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Video: What is a Stock Split?
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Bank of Montreal is a financial services provider based in North America. Co. conducts business through three operating groups: Personal and Commercial Banking, which provides customers with a range of financial products and services, including deposits, lending, and everyday financial and investment advice through a network of branches, dedicated contact centers, digital banking platforms and automated teller machines; BMO Wealth Management, which provides a range of wealth, asset management and insurance products and services; and BMO Capital Markets, which provides equity and debt investment and corporate banking services, as well as global market sales and trading solutions. According to our Bank of Montreal (Quebec) stock split history records, Bank of Montreal (Quebec) has had 2 splits. | |
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Bank of Montreal (Quebec) (FNGU) has 2 splits in our Bank of Montreal (Quebec) stock split history database. The first split for FNGU took place on February 12, 2021. This was a 10 for 1 split, meaning for each share of FNGU owned pre-split, the shareholder now owned 10 shares. For example, a 1000 share position pre-split, became a 10000 share position following the split. FNGU's second split took place on October 31, 2022. This was a 1 for 10 reverse split, meaning for each 10 shares of FNGU owned pre-split, the shareholder now owned 1 share. For example, a 10000 share position pre-split, became a 1000 share position following the split.
When a company such as Bank of Montreal (Quebec) 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 Bank of Montreal (Quebec) 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 Bank of Montreal (Quebec) stock split history from start to finish, an original position size of 1000 shares would have turned into 1000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Bank of Montreal (Quebec) shares, starting with a $10,000 purchase of FNGU, presented on a split-history-adjusted basis factoring in the complete Bank of Montreal (Quebec) stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
01/24/2018 |
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End date: |
04/30/2024 |
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Start price/share: |
$53.40 |
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End price/share: |
$292.80 |
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Dividends collected/share: |
$0.00 |
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Total return: |
448.31% |
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Average Annual Total Return: |
31.20% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$54,820.67 |
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Years: |
6.27 |
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Date |
Ratio |
02/12/2021 | 10 for 1 | 10/31/2022 | 1 for 10 |
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