Keyword Analysis & Research: nvidia stock split

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Frequently Asked Questions

What is stock split and why do stocks split?

A stock split is a corporate action in which a company divides its existing shares into multiple shares. Basically, companies choose to split their shares so they can lower the trading price of their stock to a range deemed comfortable by most investors and increase the liquidity of the shares.

What does stock split mean?

Definition. A stock split is simply one share of stock being split into more shares. The size of the split is set by the company and represented with a ratio. A 1:2 stock split means that 1 share is split in to two shares. A 1:10 split means that 1 share is split in to 10.

Does stock split impact authorized shares?

Stock splits affect only the issued and outstanding stock -- the authorized shares don't split. The board of directors decides when to dip into the authorized shares to issue new stock, and when those shares are issued, they are called issued and outstanding stock. A forward stock split increases the total number of shares issued and outstanding.

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