Nvidia Stock Split: What You Need to Know
Breaking News:
NVIDIA (NVDA) has announced a four-for-one stock split, effective June 10th, 2021. After the split, shareholders will receive three additional shares for every share they own.
Historical Impact of Stock Splits on NVDA
Stock splits have historically had a negative impact on Nvidia's share price. However, this may not be the case this time due to the company's strong financial performance.
Details of the Split
* The record date for the split is June 21, 2021. * The split will take effect on June 10, 2021. * After the split, there will be four times as many shares of Nvidia common stock. * The share price will be adjusted to reflect the split.
Benefits of the Split
* The split will make Nvidia's shares more affordable to retail investors. * The increased number of shares may increase trading volume and liquidity. * The split could be a positive signal from management that they believe the company's stock is undervalued.
Risks of the Split
* The split will not change the intrinsic value of Nvidia's shares. * The split may dilute the earnings per share. * The split may not have a significant impact on the share price.
What Investors Should Do
* Consider the historical impact of stock splits on Nvidia. * Evaluate Nvidia's financial performance and growth prospects. * Make an informed decision based on your investment goals and risk tolerance.
Additional Information
* Nvidia's press release: https://nvidianews.nvidia.com/news/nvidia-announces-four-for-one-stock-split * Nasdaq's guide to stock splits: https://www.nasdaq.com/articles/what-is-stock-split-2011-04-13 * Yahoo Finance's analysis of Nvidia's stock split: https://finance.yahoo.com/news/nvidia-stock-split-everything-know-130000277.html
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