Nvidia Stock Split: All You Need to Know
What is a Stock Split?
A stock split is a corporate action where a company divides its outstanding shares into a larger number of shares. This results in a decrease in the per-share price while maintaining the same overall market capitalization.
Nvidia's 10-for-1 Stock Split
On May 22, 2024, Nvidia announced a 10-for-1 forward stock split. This means that for every one share of Nvidia stock held, shareholders will receive 10 shares. The split will take effect on June 10, 2024.
Impact on Share Price
If Nvidia stock were to close at $122.44 per share on Wednesday, as it did before the split announcement, the post-split share price would be $12.244 per share (assuming a 10-for-1 split ratio).
Conclusion
Nvidia's stock split is a significant event that will make its shares more accessible to a wider range of investors. While the split itself does not affect the intrinsic value of the company, it can provide psychological benefits by making the stock appear more affordable and increasing its liquidity. Overall, the split is a positive move for Nvidia investors and reflects the company's confidence in its long-term growth prospects.
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