Nvidia Announces 10-for-1 Stock Split
Lowering Share Price for Wider Accessibility
Details of the Split
On Wednesday, Nvidia (NASDAQ: NVDA) announced a 10-for-1 stock split, meaning that each current share held by investors will be divided into 10 shares. At the closing price of $949.50 on Wednesday, the post-split share price will be approximately $94.95.
Implementation and Timeline
The stock split will take effect after the market closes on Thursday, June 6. The distribution of new shares to eligible shareholders will occur on Friday, June 7. Trading of the split-adjusted shares will commence on the same day.
Rationale for the Split
Nvidia explained that the stock split is intended to make stock ownership more accessible to employees and investors. By reducing the share price, Nvidia aims to broaden the pool of potential investors and enhance the liquidity of its stock.
Impact on Market Value
The stock split itself does not alter the total market capitalization of Nvidia. The value of the company remains the same, as each shareholder will simply own a larger number of shares with a lower per-share value. However, stock splits can sometimes lead to increased trading volume and investor interest.
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