What Is A Stock Split

Nvidia Stock Split: All You Need to Know

What is a Stock Split?

A stock split is a corporate action in which a company divides its existing shares into a larger number of shares.

Types of Stock Splits

There are two main types of stock splits:

• Forward stock split: This is the most common type of split and involves offering more shares to current holders.
• Reverse stock split: This is a less common type of split and involves reducing the number of shares outstanding.

Nvidia's Stock Split

Nvidia announced a 10-for-1 forward stock split in its fiscal first-quarter earnings report on Wednesday. The shares will begin trading on a split-adjusted basis on July 20, 2023.

What This Means for Investors

The stock split will give existing Nvidia shareholders nine additional shares for every one that they already own. This will not change the value of their investment, as the total market capitalization of the company will remain the same.

Nvidia's Stock Split History

Nvidia has a history of using stock splits to make its shares more affordable to investors. The company has completed four stock splits since its IPO in 1999:

• 2-for-1 split in 2001
• 2-for-1 split in 2005
• 2-for-1 split in 2010
• 10-for-1 split in 2023