Nvidia Announces 10-for-1 Stock Split
Breaking News:
Nvidia (NVDA) to Split Stock on June 7
Nvidia Corporation (NVDA), a leading semiconductor company, has announced a 10-for-1 stock split that will take effect after market close on June 7. The split comes on the heels of tremendous price appreciation for NVDA shares, which have reached record highs in recent months.
With the split, each share of NVDA stock will be divided into 10 new shares. This means that an investor who currently owns one share of NVDA will receive 10 shares after the split. The stock price will be adjusted accordingly, with each share worth approximately 1/10 of its current value.
The stock split is designed to make NVDA shares more accessible to a broader range of investors. By lowering the price per share, Nvidia hopes to attract new investors and increase liquidity in the stock. The split also aligns with Nvidia's history of stock splits, as the company has previously executed a 2-for-1 split in 2016.
Investors should note that the stock split does not affect the fundamental value of the company. It simply adjusts the number of shares outstanding and the price per share. The value of an investor's holdings will remain unchanged after the split.
The announcement of the stock split was met with positive sentiment in the market. NVDA shares jumped 3% to a new record of $1199 on Wednesday, expanding its market capitalization to a whopping $295 trillion.
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