Netflix Announces 10-for-1 Stock Split to Make Shares More Accessible

Netflix is making its stock more affordable for everyday investors. The company’s board approved a 10-for-one stock split this week. This move will dramatically lower the price of a single share.The decision aims to make employee compensation plans more practical. It also opens up ownership to a broader range of retail traders. According to Reuters, the split is scheduled for mid-November.

What the Netflix Stock Split Means for Shareholders

Netflix stock closed recently at $1,089 per share. After the split, that same share will be worth approximately $109. This price point is far more manageable for individual investors.The primary reason is to help employees. Netflix encourages staff to take stock options as part of their pay. A lower share price makes this program much more accessible and valuable for them.

The Broader Impact of the Stock Division

This is not the first time Netflix has split its stock. The last split was a seven-for-one division back in 2015. Historical data shows splits can often generate positive market sentiment.The action makes the company’s stock appear less intimidating. It could attract a new wave of investor interest. This often leads to increased liquidity in the market for the shares.

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The Netflix stock split is a strategic move to democratize share ownership and reinforce its commitment to employee compensation, making Wall Street more accessible to Main Street.

Thought you’d like to know

When does the Netflix stock split happen?

Trading of the new, split shares will begin on Monday, November 17. Shareholders of record on November 10 will receive nine additional shares for each one they own.

Why is Netflix splitting its stock?

The company stated the split is to reset the share price for employee stock option programs. It also has the effect of making the stock more affordable for regular investors to purchase.

What was the price of Netflix stock before the split?

Before the announcement, Netflix shares were trading at around $1,089. After the 10-for-1 split, the price per share will be roughly $109.

How will the stock split affect current investors?

Current investors will see the number of shares they own multiply by ten. The total value of their investment will remain the same immediately after the split occurs.

Has Netflix done stock splits before?

Yes, this will be the third stock split in Netflix’s history. The most recent was a seven-for-one split in 2015, which also followed a period of significant share price growth.