GameStop just approved a 4-1 stock split.
The proposal was on the table for months, but Dow Jones Newswire has officially confirmed it.
Shareholders have been waiting for this fundamental catalyst in hopes of scaring short sellers and finally creating a proper GME short squeeze.
But this is more than just a short squeeze catalyst.
If you’re a true believer of the company and in the innovation and future of where it’s going in the NFT space, now is the perfect time to look into owning a piece of the company.
It’s about to get pretty damn affordable.
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GameStop announces 4-1 stock split
GameStop Corp. on Wednesday said its board approved and declared a four-for-one split.
It’s the first time GameStop has split the stock since 2007 making it the second time in history it happened.
GameStop had done a 2-1 stock split thirteen years ago.
So, what does a 4-1 stock split even mean?
It means that current GME shareholders will receive 4 shares of GME stock for every one share they currently hold.
If you’re holding 1 share of GameStop in your stock portfolio, you will receive 4 shares of GME stock.
Shareholders with 1,000 shares of GME stock will receive 4,000 shares.
However, this does not mean GameStop’s share price will quadruple in the process.
On the contrary, GameStop’s current share price will be divided by four.
The stock closed at $117.43 on Wednesday and has jumped more than 8% after hours.
What will GameStop shares be worth after the stock split?
Based on Wednesday’s number figure, GME stock will be worth approximately $29.35 after the split, making the stock much more affordable for the public to invest in.
GameStop stock split date
Investors who purchase GME stock before July 18 will receive the additional shares in GameStop’s 4-1 stock split.
Some investors might wonder, why is GameStop splitting its stock?
Often times when a stock’s share price has reached high levels, a company will issue a stock split to make it more affordable for the public to purchase.
We’ve seen this happen with Tesla (TSLA) and Apple (AAPL) in the past.
Amazon recently had a 20-1 stock split, making it extremely affordable to add AMZN stock to your portfolio.
Stock splits are a common way to attract more investors towards a growing company.
Are you a GME shareholder?
How many shares of GME stock will you own after the stock split?
Or are you a curious investor who is thinking of buying GME after the stock splits at a much more affordable price?
And lastly, will GameStop’s 4-1 stock split be a catalyst to finally squeeze short sellers from their positions?
I’d love to hear your thoughts.
Leave a comment down below.
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If I’m not wrong, if I own 1000 shares, shouldn’t I receive 3000 shares and not 4000? 1 share is going to be 4 shares, that means I get 3 shares, not 4 shares. Correct me if I’m wrong.
Let’s start a discussion! Leave your thoughts below.
Won’t this give an opportunity for shorts to cover at a lower price?
They need to cover 4 times as many short shares as they held prior to the split. So yeah, the price per share will go down but the # of shorted shares will go up.