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NVIDIA Announces Stock Split to Enhance Accessibility
4-for-1 Split Declared by Board of Directors
NVIDIA Corporation (NASDAQ: NVDA), a leading provider of graphics processing units (GPUs), has announced a 4-for-1 forward stock split in the form of a stock dividend. The move is designed to make stock ownership more accessible to employees and investors.
Details of the Split
The split will take effect on April 21, 2023. Eligible shareholders of record as of April 7, 2023 will receive three additional shares for every one share they currently hold. The new shares will be distributed on a pro rata basis.
This is the company's first stock split since 2007. The last split was also a 2-for-1 forward split.
Rationale Behind the Split
NVIDIA did not provide a specific reason for the stock split in its announcement. However, it is generally believed that companies may choose to split their stock when the price per share has risen significantly, making it more expensive for individual investors to purchase. By splitting the stock, the company reduces the per-share cost, making it more affordable for smaller investors.
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