Should You Buy GameStop Stock After the Split?
GameStop (NYSE: GME) is capturing headlines since it announced a 4-for-1 stock split after the markets closed on Wednesday, July 6. The brick-and-mortar game retailer's shares spiked on the day following the announcement.
The recent news has some investors asking if it's a good opportunity to buy GameStop stock. What follows is an explanation of what the stock split could mean for investors, and an evaluation of the question of whether GameStop stock is a buy.
GameStop's board of directors approved a 4-for-1 stock split that will take effect on July 22. After the markets close on July 21, shareholders will receive a dividend of three additional shares of the company's common stock for each share they hold. However, ownership percentages will not change. Shareholders will have their shares split into smaller slices.
Source Fool.com
