Nvidia's Stock Split Happened 2 Weeks Ago. Is It Too Late to Buy?
The artificial intelligence steam train that is Nvidia (NASDAQ: NVDA) finally overtook Apple and to become the most valuable company on the planet by market capitalization. This comes on the heels of the company's 10-for-1 stock split earlier this month. Investors saw the number of their shares multiplied by 10, while the share price became a tenth of where it was before.
A split like this is somewhat cosmetic in that it doesn't change the value of people's investments directly. But there's often an indirect effect. In Nvidia's case, more people who don't have access to fractional trades can now afford shares who couldn't before when they were trading around $1,200. The lower stock price also makes options trading more accessible.
This brings new money into the market and can bump up the price, which did indeed happen.
Source Fool.com
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