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Video: What is a Stock Split?
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LAIX is a holding company. Through its subsidiaries and consolidated variable interest entities, Co. is engaged in providing online English learning services through its Liulishuo mobile app in the People's Republic of China. Users can purchase Co.'s services by subscribing the courses either directly from Co. or through authorized online commerce platform partners. Co. provides its products and services on-demand via its mobile apps, primarily its English Liulishuo mobile app. English Liulishuo combines a suite of Co.'s courses, including free courses for leisure learning, the paid personalized standard courses, DongNi English, and other paid courses such as Authentic Pronunciation. According to our LAIX stock split history records, LAIX has had 1 split. | |
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LAIX (LAIX) has 1 split in our LAIX stock split history database. The split for LAIX took place on March 04, 2022. This was a 1 for 14 reverse split, meaning for each 14 shares of LAIX owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 71.4285714285714 share position following the split.
When a company such as LAIX 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 LAIX stock split history from start to finish, an original position size of 1000 shares would have turned into 71.4285714285714 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into LAIX shares, starting with a $10,000 purchase of LAIX, presented on a split-history-adjusted basis factoring in the complete LAIX stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
09/28/2018 |
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End date: |
04/08/2022 |
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Start price/share: |
$175.70 |
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End price/share: |
$3.10 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-98.24% |
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Average Annual Total Return: |
-68.15% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$176.44 |
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Years: |
3.53 |
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Date |
Ratio |
03/04/2022 | 1 for 14 |
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