On July 20, NVIDIA stock will be split 4-in-1. For investors, it means stock affordability. For NVIDIA, it means higher stock circulation. For Olymp Trade clients, it may be a chance to make a profit as the stock is expected to become more volatile after the split.
This article explains what a stock split is, how it works, and what the related changes in NVIDIA’s trading will be, with corresponding dates. Learn about NVIDIA’s stock split, check your trades, and prepare for some extra volatility with this stock!
If a public company wants to reduce the price of its share, it can do a stock split. In this case, it will issue a fixed number of new shares for each existing one. With NVIDIA, the split proportion is four to one. Therefore, shareholders will receive four new shares instead of each one they own, and the new price of the stock will be four times less than before.
How Does It Affect the Stock?
The stock split makes the company shares more accessible to investors. Frequently, that improves their circulation in the market. In turn, this may bring better share price performance in the long run and revitalize demand for the company shares.
NVIDIA stock price is expected to experience high short-term volatility immediately after the stock split. That is what you may use to try making a profit on this event. However, keep in mind that extra volatility brings extra risk. Therefore, the probability of losses will be higher, too, so trade with caution.
Will There be Any Changes to the Trading Schedule?
During the period July 15-19, NVIDIA stock will be traded in Close-Only mode. Any trade that remains open on July 19 will be automatically closed by the last price of the US session at 19:59 GMT. Also, all pending orders will be canceled. Normal trading will resume on July 20.
Decide whether you want to trade NVIDIA. If you are keen on this stock, then keep trading it and close your positions on it before July 20. Starting on July 20, be ready for some ups and downs on its chart. If you want to go with the risk, prepare to ride the volatility and try making some gains. If you prefer staying on the safe side, then observe the stock after July 20, and feel free to open positions as soon as the price cools down.
