GameStop rose on stock split news. What you need to know.
What happened
Shares of $GameStop(GME.US$ rose near 9% in after-hours trading after the video game retailer announced a four-for-one stock split on Wednesday.
The proposal for a stock split in the company crowded with retail investors dated back to March.
What you need to know
What's a stock split:
A stock split means that a public firm splits a share into several shares. A stock split usually happens when the stock price is too high, and a reverse stock split may be executed when the stock price is too low.
Eligible stockholders and date:
Stockholders of record at the close of business on July 18, 2022.
Trading will begin on a stock split-adjusted basis on July 22, 2022.
Trading will begin on a stock split-adjusted basis on July 22, 2022.
Split policy:
A 4-for-1 stock split means if you are an eligible stockholder after the split is complete, you'll receive a dividend of three additional shares for each then-held share of the stock.
Stock value:
The stock split will not change the total stock value and shareholding proportion owned by you, and the company's market cap also remains the same.
What effect:
It will lower the stock price, which may make the stock more affordable and will possibly enhance the stock's liquidity. The split doesn't cause the stock price to rise directly, but it may reflect that the company is confident about the future.
For these factors, the stock price may rise. But there’s no guarantee. Even if it rises, maybe the price reduction will come soon. So we should treat it rationally.
Several major U.S. companies have split their stocks over the past two years, including $Apple(AAPL.US$, $Tesla(TSLA.US$and $Amazon(AMZN.US$.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Jack1212 : Is the dividend stock taxable?
Dubrockid : I'm pretty sure all stocks are taxable
EverDust : Dividend stocks - taxable every earnings on only the dividend
Day trading - a few times a day will be exempted, if hundred of times or more, might be subjected to tax ( This is a grey area)
Long term investment ( 1 year and above )- no need pay tax.
EverDust : Also this is different from country from country, mine from Singapore. Best to check with your country regulation.
MateoRomero : Great insider
GOOBERHAG : How does this work with fractional shares?