Nvidia Executes 10-for-1 Stock Split

10-for-1 Stock Split Details

NVIDIA (NVDA) recently announced a 10-for-1 forward stock split. This means investors received nine additional shares for each share of Nvidia common stock they owned at the markets close on July 19, 2022.

After the split, each share of Nvidia stock will be worth approximately 1/10th of its pre-split value. The stock began trading on a split-adjusted basis at the market open on July 20, 2022.

Reasons for the Stock Split

Nvidia's 10-for-1 stock split is a common practice among companies that have seen significant share price appreciation. It can make the stock more affordable to a wider range of investors, potentially increasing liquidity and trading volume. This can also benefit the company by expanding its shareholder base.

Nvidia's share price had surged 725% during the preceding 18 months, making it less accessible to some investors. The stock split aims to reset the share price to a more attractive level, potentially attracting new investors and increasing trading activity.

Impact on Investors

For each share of Nvidia stock an investor owned prior to the split, they now own 10 shares. The total value of their investment remains the same, but the per-share price has decreased by a factor of 10.

The stock split does not affect the company's fundamentals or financial performance. It is simply a way to make the stock more accessible to investors and potentially increase liquidity.