GameStop Announces 4-for-1 Stock Split. Here's What Investors Need to Know

After being a wallflower for years, GameStop (NYSE: GME) became a major player in the meme stock phenomenon. Retail investors flocked to the game and entertainment-focused retailer, driving its shares into the stratosphere. At one point early last year, the stock had surged more than 7,000% before falling back to earth. Shares are currently down 32% over the past year.

Now, GameStop is making headlines for a different reason. The company announced this week that it plans to split its stock for the first time in 15 years. This surprising move is sparking renewed interest among investors regarding how the stock split will work and what it means to shareholders.

GameStop announced after the market close on Wednesday that its board of directors had approved a 4-for-1 stock split of the company's Class A common stock. The move will take place in the form of a special dividend -- meaning shareholders would be awarded additional shares of stock -- so no dividend in the commonly used sense of the word. 

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Source Fool.com