GameStop Finally Announced Its Stock Split. The MOASS Still Isn't Coming
GameStop's (NYSE: GME) stock split announcement finally dropped. Investors have been waiting since March for the move after the video game retailer dramatically increased the number of shares outstanding from 300 million to 1 billion with the goal of splitting the stock.
The shares will split by a four-to-one ratio, meaning for every share you own, you get three more, but each one will be worth one-fourth the price they previously traded at. So, with GameStop recently closing around $135 per share, an investor with 10 shares will now own 40 stubs instead, but each will be worth only $33.75.
Unfortunately, the "mother of all short squeezes," or MOASS, that meme stock traders have been waiting for still will not happen. Just because GameStop's split will be in the form of a "dividend" doesn't mean there will be any special impact on short-sellers. Yes, they'll have to buy back four times as many shares, but they'll be priced lower, just like investors who are long on the stock.
Source Fool.com
