When a company such as BAIYU Holdings 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 BYU split history from start to finish, an original position size of 1000 shares would have turned into 20 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into BAIYU Holdings shares, starting with a $10,000 purchase of BYU, presented on a split-history-adjusted basis factoring in the complete BYU split history.

About BAIYU Holdings

BAIYU Holdings is a holding company. Through its subsidiaries, Co. is engaged in a used luxurious car leasing business as well as a commodities trading business operating in China. Co.'s operations consist of leasing of luxurious pre-owned automobiles and operation of a non-ferrous metal commodities trading business. Co. operates a luxurious car business that is conducted under the brand name Batcar through its variable interest entity (VIE), Beijing Tianxing Kunlun Technology Co. Ltd. Co. also conducts a commodities trading business via its other VIE, Shenzhen Huamucheng Trading Co., Ltd. According to our BYU split history records, BAIYU Holdings has had 1 split.

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