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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.
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