Announcement And Details

NVIDIA's Stock Split: Making Ownership More Accessible

Announcement and Details

On Wednesday, June 4, 2024, NVIDIA announced a significant move: a four-for-one stock split in the form of a stock dividend. This means that for every share of NVIDIA common stock held, investors will receive three additional shares. The split will take effect in the third quarter of 2024.

Purpose of the Split

NVIDIA stated that the stock split aims to make stock ownership more accessible to its employees and investors. This move aligns with the company's desire to broaden its shareholder base and foster a greater sense of ownership among employees.

Stock Split History

NVIDIA has a long history of stock splits. The following is a table showing past stock splits since 1999: | Date | Ratio | |---|---| | December 19, 2022 | 2-for-1 | | September 28, 2018 | 2-for-1 | | June 20, 2016 | 2-for-1 | | November 6, 2014 | 2-for-1 | | October 26, 2013 | 2-for-1 | | August 15, 2011 | 2-for-1 | | February 23, 2010 | 2-for-1 | | April 14, 2008 | 2-for-1 | | June 29, 2006 | 2-for-1 | | January 12, 2005 | 2-for-1 |

Impact on Stock Price

Traditionally, stock splits have a neutral effect on a company's stock price. The total value of all shares held by an investor remains the same after the split. However, stock splits can sometimes lead to short-term price volatility due to increased trading activity.

Conclusion

NVIDIA's stock split marks a significant milestone for the company. By making stock ownership more accessible, NVIDIA is fostering a sense of inclusion among its employees and investors. The split is expected to have a positive impact on shareholder engagement and long-term growth.