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Mention stock dividends explicitly
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Flux
Flux
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Consider Nvidia — they are splitting their stock 4:1 through a stock dividend. What was preventing someone from buying a share before ex dividend, holding it past the record date and selling, only to receive 3 new shares on the payout date? Why wouldn’t instead the price fall to counteract this? It seems like an easy way to make 75%. Instead Nvidia traded higher in this time? What am I missing?

Consider Nvidia — they are splitting their stock 4:1. What was preventing someone from buying a share before ex dividend, holding it past the record date and selling, only to receive 3 new shares on the payout date? Why wouldn’t instead the price fall to counteract this? It seems like an easy way to make 75%. Instead Nvidia traded higher in this time? What am I missing?

Consider Nvidia — they are splitting their stock 4:1 through a stock dividend. What was preventing someone from buying a share before ex dividend, holding it past the record date and selling, only to receive 3 new shares on the payout date? Why wouldn’t instead the price fall to counteract this? It seems like an easy way to make 75%. Instead Nvidia traded higher in this time? What am I missing?

Added link to the press release; edited tags; minor edits to formatting
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Flux
Flux
  • 17.2k
  • 10
  • 73
  • 133

Consider Nvidia- — they are splitting their stock 4:1splitting their stock 4:1. What was preventing someone from buying a share before ex dividend, holding it past the record date and selling, only to receive 3 new shares on the payout date? Why wouldn’t instead the price fall to counteract this? It seems like an easy way to make 75%. Instead Nvidia traded higher in this time? What am I missing?

Consider Nvidia- they are splitting their stock 4:1. What was preventing someone from buying a share before ex dividend, holding it past the record date and selling, only to receive 3 new shares on the payout date? Why wouldn’t instead the price fall to counteract this? It seems like an easy way to make 75%. Instead Nvidia traded higher in this time? What am I missing?

Consider Nvidia — they are splitting their stock 4:1. What was preventing someone from buying a share before ex dividend, holding it past the record date and selling, only to receive 3 new shares on the payout date? Why wouldn’t instead the price fall to counteract this? It seems like an easy way to make 75%. Instead Nvidia traded higher in this time? What am I missing?

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Joe
Joe
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Why doesn’t the stock price fall after the record date for a company splitting stock?

Consider Nvidia- they are splitting their stock 4:1. What was preventing someone from buying a share before ex dividend, holding it past the record date and selling, only to receive 3 new shares on the payout date? Why wouldn’t instead the price fall to counteract this? It seems like an easy way to make 75%. Instead Nvidia traded higher in this time? What am I missing?