powerhouse Nvidia began trading Monday on a 10-to-1 split, a move that will make the stock more easily tradable by retail investors., a U.S.
“This is really just splitting the pizza pie into more slices — it doesn’t inherently change the size of the pie itself,” Bankrate’s James Royal told theIt isn’t super common for companies to conduct big forward splits like this, according to Royal, who pointed out that there have been some major ones over the past few years in the high-profile tech stocks. For instance, Apple has several stock splits over the past decade or so because it has proven so successful.
“It acts as a signaling effect to investors that management has confidence in the stock and that the stock price will be able to maintain or be maintained in the future,” Royal said. “Stocks that conduct forward splits tend to outperform the S&P 500 over the subsequent year.” Longer-run investors in Nvidia have seen the cash cow explode even more. If an investor put $25,000 into the tech company five years ago, that would have grown to about $850,000 today, a whopping 3,288% return on investment.
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