Home Business There could be another reason behind Nvidia’s stock split

There could be another reason behind Nvidia’s stock split

0
There could be another reason behind Nvidia’s stock split

[ad_1]

Nvidia headquarters in Santa Clara, California, on Tuesday, Feb. 23, 2021.

David Paul Morris | Bloomberg | Getty Images

Nvidia saying a 4-for-1 stock split on Friday could have some important ramifications.

Just like with Apple just a few years in the past, could this stock split lastly open the door for the corporate to to hitch the Dow Jones Industrial average?

Currently, UnitedHealth — which has a share value above $400 — has the best weighting within the Dow. That’s as a result of the Dow is a price-weighted index, giving higher-priced shares extra affect.

At Nvidia’s present pre-split value, it would not be very possible for it to hitch the Dow, since it might have a really disproportionate impression on the index. But at a post-split $150 value – the story may be very totally different. At that degree, it might be proper in the course of the pack when it comes to its index weighting.

[ad_2]

Source link