When a company such as ATV 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 ATV split history from start to finish, an original position size of 1000 shares would have turned into 150 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into ATV shares, starting with a $10,000 purchase of ATV, presented on a split-history-adjusted basis factoring in the complete ATV split history.

About ATV

Acorn International is a holding company. Through its subsidiaries, Co. is a marketing and branding company in China. Co. has two divisions: Proprietary Brand Division, and Acorn Digital Services Division. In the Proprietary Brand Division, Co. sells its own products primarily through e-commerce channels in China. In the Acorn Digital Services Division, Co. helps third party brands in the Chinese digital and e-commerce market. Co.'s direct sales business platforms involve marketing and selling products directly to consumers in China through its Internet/e-commerce sales platform. Co.'s Internet/e-commerce sales platform includes its official website and WeChat store. According to our ATV split history records, ATV has had 1 split.

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