Published on 10 May 2022 on Zacks via Yahoo Finance

Stock Split Mania; Nintendo Joins The Party

Stock splits have gained popularity over the last several years. Generally, a company performs a stock split for a simple reason – the stock price has increased, becoming a barrier to entry for potential investors. In its simplest form, it’s a shareholder-friendly move.

A stock split doesn’t affect a company's market capitalization, but it lowers the value of each individual share, providing ease for the stock price to multiply once again and provide investors with a multitude of gains. Additionally, volume increases with a lower share price, boosting overall share movement.

In an effort to boost stock liquidity, gaming giant Nintendo NTDOY announced today a 10-for-1 stock split; the split will take effect later this year, on October 1st. The move is very similar to recent announcements we’ve received with Amazon AMZN and Alphabet GOOGL. Both AMZN and GOOGL announced earlier this year that they would be performing a 20-for-1 split.