When a company such as GEB 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 GEB split history from start to finish, an original position size of 1000 shares would have turned into 250 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into GEB shares, starting with a $10,000 purchase of GEB, presented on a split-history-adjusted basis factoring in the complete GEB split history.

About GEB

General Electric Capital is the financial services segment of General Electric Company (GE). Co.'s products and services include: Commercial Lending and Leasing, which provides capital and services to industrials served by GE, including the healthcare industry through its Healthcare Equipment Finance business; Energy Financial Services, which invests in energy projects and companies by providing structured equity, debt, leasing, partnership financing, project finance and commercial finance; as well as GE Capital Aviation Services, which provides commercial aircraft financing and leasing for a range of aircraft types and financing options. According to our GEB split history records, GEB has had 1 split.

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