When a company such as RAS 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 RAS 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 RAS shares, starting with a $10,000 purchase of RAS, presented on a split-history-adjusted basis factoring in the complete RAS split history.

About RAS

RAIT Financial Trust is a real estate investment trust (REIT), focused on providing commercial real estate financing throughout the U.S. Co. also owns and manage a portfolio of commercial real estate properties and manage real estate assets for third parties. Co. is focus on its core CRE lending business line. Co. provides customized lending solutions to meet borrower needs and internal credit goals. Co. provides tailored middle-market financing solutions and a full complement of lending products for stabilized and light transition CRE. Co. also managed its own REO portfolio, managed third-party properties and assets. According to our RAS split history records, RAS has had 1 split.

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