Nvidia's 10-for-1 Split Isn't a Reason to Buy the Stock, but These 3 Reasons Are
On Monday, the stock price of Nvidia (NASDAQ: NVDA) will fall about 90%. But don't worry, Nvidia holders -- you'll also have 10 times as many shares, as the company will perform the 10-for-1 stock split it announced on its May 22 earnings call.
Stock splits don't change the underlying valuation of a company, but some think they're reasons to buy a Stock. Why? Because a lower share price could attract more retail investors who might not have the $1,200 required to buy a share of Nvidia today.
But with most brokers now offering fractional-share buying, splits may not pack the punch that they used to in spurring retail-investor buying.
Source Fool.com
