NVIDIA Announces 10-for-1 Stock Split
Company Aims to Increase Accessibility for Employees and Investors
Dividend to Be Distributed on June 7th, Trading Begins on Split Basis
NVIDIA Corporation (NVDA) has announced a 10-for-1 forward stock split in the form of a stock dividend. The split will affect shareholders of record as of market close on Thursday, June 7th, with the distribution of new shares scheduled for the end of the next trading day, Friday, June 7th. Trading of NVIDIA stock on the split basis will begin on June 10th.
The company stated that the stock split is intended to make stock ownership more accessible to employees and investors. Despite recent gains, NVIDIA shares remain at a relatively high price point, which can make them less accessible to smaller investors. By splitting the stock into smaller units, NVIDIA aims to increase liquidity and broader participation in its ownership.
NVIDIA joins several other tech giants in implementing stock splits in recent months, including Amazon (AMZN), Alphabet (GOOGL), and Tesla (TSLA). These splits aim to make the companies' shares more affordable and accessible to a wider range of investors, including retail investors and younger generations.
It's important to note that a stock split does not affect the underlying value of the company or an investor's proportionate stake in the company. The number of shares outstanding increases, but the total market capitalization remains the same. However, stock splits can sometimes lead to increased liquidity and trading volume, which can positively impact the stock price.
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