NVIDIA's Upcoming Stock Split: What Investors Need to Know
Announcement of NVIDIA's Stock Split
NVIDIA Corporation (NVDA) has announced a seven-for-one stock split, effective June 10th, 2024, increasing the total number of outstanding shares from 454.1 million to 3.179 billion. This will be the company's seventh stock split since its initial public offering (IPO) in 1999.
Historical Performance after Stock Splits
NVIDIA has a history of delivering positive returns following stock splits. For example, its previous stock split in 2019 resulted in a 32% gain in the following year. Over the long term, the company's stock has outperformed the broader market, providing investors with significant returns.
Accessibility for Employees and Investors
NVIDIA stated that the primary motivation for the stock split is to make stock ownership more accessible to employees and investors. By lowering the per-share price, the company aims to encourage employee participation in stock ownership plans and attract a broader range of investors.
Investor Impact
Investors who own NVIDIA stock as of the close of trading on Thursday, June 9th, will receive six additional shares for every share they currently hold. This will significantly increase the number of shares in the market but will not affect the overall value of the company or investors' holdings.
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