![]() Investors can't know how NVIDIA shares will trade between now and the day of the stock split. Other investors with a shorter investing time horizon may simply sell their shares to capitalize on any irrational run-up in the stock price, in an attempt to make a quick buck.įinally, there's simply no way to know what the news cycle could bring on any given day. After the split, that same investor will own 40 shares worth $190 each, also worth a total of $7,600 - illustrating that the total value of their holding ultimately won't change.įurthermore, even if there's greater demand for the stock because of the lower share price after the split, it will likely be a temporary phenomenon. For example, if an investor holds 10 shares of NVIDIA stock, and each share is worth $760 pre-split, those 10 shares are worth a total of $7,600. On the face of it, it might seem that NVIDIA stock is a buy because of the upcoming stock split, but it doesn't hold up to closer scrutiny. What's the reason for the stock split? NVIDIA said the board declared the share split "to make stock ownership more accessible to investors and employees." A suitable opportunity? ![]()
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