What Is A Stock Split

Nvidia Stock Splits

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. This increases the number of shares outstanding while decreasing the price per share.

Why Do Companies Split Their Stock?

• Make shares more affordable: A stock split can make a company's shares more affordable to a wider range of investors.
• Increase liquidity: A stock split can increase the liquidity of a company's shares by making them more widely traded.
• Signal confidence: A stock split can be a sign that a company is confident in its future prospects.

Nvidia's Stock Splits

Nvidia has conducted two stock splits in the past three years. The first split, a 2-for-1 split, occurred in July 2019. The second split, a 10-for-1 split, occurred in June 2023.

Nvidia's stock has performed well since both splits. Following the 2019 split, the stock rose by an average of 12% over the following 12 months. Following the 2023 split, the stock has risen by 33%.

What to Expect from Nvidia's Stock Split

Nvidia's stock split is expected to have a positive impact on the company's shares. The split will make the shares more affordable to a wider range of investors, which could increase demand and drive up the price.

Conclusion

Nvidia's stock splits have been a success for the company and its shareholders. The splits have made the shares more affordable and increased liquidity, which has led to higher stock prices. Nvidia's latest stock split is expected to have a similar positive impact on the company's shares.