Nvidia (NASDAQ:NVDA) stock is on the rise Monday after the company announced plans for a stock split.
Here’s everything investors in NVDA stock need to know about the proposed split.
- Nvidia wants to enact a four-for-one split of NVDA stock.
- The plan is to distribute the additional three shares to investors as a stock dividend.
- This would have it increasing its total number of shares from 1 billion to 4 billion.
- The goal of the stock split is to reduce the price of NVDA stock.
- Doing so will make it more accessible to new investors without decreasing the value of current investments.
- It also opens up the option of allowing employees of Nvidia to acquire more shares of the stock.
- Nvidia notes that the proposed stock split comes from its Board of Directors.
- Before the Board can move forward with the split plans, it needs approval from investors.
- The company plans to seek approval during its 2021 Annual Meeting of Stockholders via a shareholder vote.
- That meeting is set to take place on June 21, 2021.
- If the stock split plan gets approval, the extra shares of NVDA will be distributed to shareholders when markets close on July 19, 2021.
- This will have shares of NVDA stock trading on a stock split-adjusted basis when markets open the following day.
- It looks like shareholders are in favor of the stock split with shares heading higher today.
- That’s also resulted in heavy trading of NVDA stock today.
- As of this writing, more than 9 million shares of the stock have changed hands.
- That’s already above the stock’s daily average trading volume of 8.3 million shares.
NVDA stock was up 4.6% as of Monday afternoon and is up 19.6% higher since the start of the year.
There’s plenty of other stock news for investors to check out today.
We’re keeping up with the latest stock market news today with looks at shares on the move. That includes recent stories concerning Virgin Galactic (NYSE:SPCE), Castor Maritime (NASDAQ:CTRM), and Scopus Biopharma (NASDAQ:SCPS). Get up to speed on these topics below.
More Monday Stock News
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- SCPS Stock: The Huge FDA News Sending Scopus BioPharma Up 100%
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.