Nvidia Stock Split: Everything You Need to Know
What is a Stock Split?
A stock split is a corporate action in which a company divides its existing shares into a larger number of shares. This can be done for many reasons, including reducing the stock price per share, making it more affordable for investors to buy, and increasing the number of shares available for trading.
Nvidia's Stock Split
On July 20, 2021, Nvidia announced that it would be undergoing a 10-for-1 stock split. This means that for every share of Nvidia stock that an investor owned, they will now own 10 shares. The stock split was effective as of July 21, 2021.
Eligibility for the Stock Split
To be eligible for the stock split, investors must have owned Nvidia stock as of the record date, which was June 6, 2021. If you bought or sold Nvidia stock after June 6, 2021, you will not be eligible for the stock split.
Impact of the Stock Split
The stock split will have a number of impacts on Nvidia's stock.
- Lower Share Price: The stock split will result in a lower share price per share. This can make it more affordable for investors to buy Nvidia stock.
- Increased Liquidity: The stock split will also increase the number of shares available for trading. This can make it easier for investors to buy and sell Nvidia stock.
- No Change in Value: Despite the lower share price, the stock split will not change the total value of Nvidia's stock. Investors will still own the same percentage of the company as they did before the stock split.
Conclusion
Nvidia's stock split is a significant event for investors. It can make it more affordable for investors to buy Nvidia stock, increase liquidity, and make it easier to trade Nvidia stock. However, investors should be aware that the stock split will not change the total value of their investment.
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