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

About ZF

Virtus Total Return Fund is registered as a diversified, closed-end management investment company. The Fund's investment objective is capital appreciation, primarily through investment in equity securities, consistent with the preservation of capital. The Fund invests in sectors, such as information technology, energy, industrials, materials, and consumer discretionary. As of Dec. 31, 2016, The Fund's total assets were $312,339,000 and the Fund's investment portfolio was valued at $300,524,000. According to our ZF split history records, ZF has had 1 split.

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