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News Topical, Digital Desk : Stock Split: Global streaming giant Netflix Inc. announced a 10-for-1 stock split on Thursday, October 30. This means that the company will divide one share into 10 shares.
The company has set November 10th as the record date for the stock split. According to Netflix, shareholders who hold shares as of November 10th will receive nine additional shares for every one held. This distribution will take place on November 14th, and the stock will begin trading on an ex-split basis on November 17th.
The company stated that this move aims to bring the stock price to a level that makes the company's stock more accessible to retail investors and employees. Netflix's move is also aimed at making its Employee Stock Option Program (ESOPs) more attractive. Currently , Netflix is one of only 10 companies in the S&P 500 Index with a share price above $1,000. It's worth noting that a stock split increases the number of shares, but does not change the company's total value or fundamental position—the price decreases proportionately, while the total investment value remains the same. This is Netflix's third stock split. The company previously announced stock splits in 2004 and 2015. Netflix shares rose 3% following the announcement, reaching $1,120.27. However, it is still down about 16.5% from its all-time high of $1,341.
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