When a company such as BlackRock Income Trust 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 BKT split history from start to finish, an original position size of 1000 shares would have turned into 333.333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into BlackRock Income Trust shares, starting with a $10,000 purchase of BKT, presented on a split-history-adjusted basis factoring in the complete BKT split history.

About BlackRock Income Trust

BlackRock Income Trust is registered as a diversified, closed-end management investment company. The Trust's investment objective is to manage a portfolio of high-quality securities to achieve both preservation of capital and high monthly income. The Trust seeks to achieve its investment objective by investing at least 65% of its assets in mortgage-backed securities. The Trust invests at least 80% of its assets in securities that are issued or guaranteed by the U.S. government or one of its agencies or instrumentalities or rated at the time of investment either AAA by S&P or Aaa by Moody's. According to our BKT split history records, BlackRock Income Trust has had 1 split.

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