0

Can someone explain this to me?

"Each record holder of common stock as of the close of market on Thursday, June 6, 2024, will receive nine additional shares of common stock, to be distributed after the close of market on Friday, June 7, 2024. Trading is expected to commence on a split-adjusted basis at market open on Monday, June 10, 2024."

https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2025

What happen when you buy stocks on Friday June 7?

Improve this question

1 Answer 1

Reset to default
5

The record date is a settlement-level item and mostly can be ignored by traders. The real date you want to look at is the "ex date" for the corporate action - this is the one determined by the listing exchange. That is, when the corporate action becomes "ex" (or excluding).

In the case of the NVDA stock split, the ex-date is Monday 10 June 2024.

So any shares purchased on or after this date are "excluding" the stock split.

Any shares purchased prior to this date (eg. Friday June 7, 2024) will have this stock split corporate action applied to your holdings.

If you bought 100 NVDA shares on Friday 7 June 2024, you'll have 1000 shares in your brokerage account on Monday 10 June 2024.

Improve this answer
1
  • 3
    And if you buy shares on 10 June or later, each share should cost you about a tenth of what shares did before the split. Outside of a sone irrationality in the market, all a split does is slice the pie a different way; it doesn't change the total amount of pie or the price per gram.
    – keshlam
    Commented Jun 10 at 7:13

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .