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Nvidia stock split: What you need to know. - MarketDraft BlogMarketDraft Blog Nvidia stock split: What you need to know. - MarketDraft Blog

Nvidia stock split: What you need to know.

Nvidia’s stock split actually took effect last Friday, June 7th, and the first day of trading with the split reflected in the price was today, June 10th. A stock split means a company divides its existing shares into a larger number of shares. In Nvidia’s case, it was a 10-for-1 split. So, if you owned 1 share before, you now own 10 shares.

Companies do stock splits to make their shares more affordable for individual investors. Nvidia’s stock price had risen significantly due to strong performance, and a high share price can discourage some investors from buying in. The split itself doesn’t change the overall value of the company, but it does lower the individual share price, potentially making it more attractive to a wider range of investors.

What you might expect is some fluctuation in the stock price in the short term. The price per share will be roughly 1/10th of what it was before the split. There may also be an increase in trading volume as the lower share price entices new investors. Overall, the long-term impact of the split is difficult to predict, but it shouldn’t fundamentally change the company’s prospects.


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