When a company such as Socket Mobile 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 SCKT split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Socket Mobile shares, starting with a $10,000 purchase of SCKT, presented on a split-history-adjusted basis factoring in the complete SCKT split history.

About Socket Mobile

Socket Mobile is a provider of data capture and delivery solutions for mobile applications used in Retail, Commercial Services, Industrial and Manufacturing, Transportation and Logistics, and Health Care. Co.'s primary products are cordless data capture devices incorporating barcode scanning or RFID/Near Field Communications technologies that connect over Bluetooth. All products work with applications running on smartphones, mobile computers and tablets using operating systems from Apple® (iOS), Google™ (Android™) and Microsoft® (Windows®). Co. provides a software developer kit to application providers, which enables them to provide their consumers its barcode scanning features. According to our SCKT split history records, Socket Mobile has had 1 split.

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