The Mimi darling from reddit crowd wants to start stock splita move that would drastically reduce the cost of a single share, the company said late Thursday in Securities and Exchange Commission filing.
To do this, GameStop will have to ask shareholders at its next annual meeting to agree to increase the number of Class A shares from 300 million to 1 billion.
If the investors said yes, one share would become much cheaper – because the total value of the company remains the same. It is only divided into a larger number of posts. shares Jim Stop (GME) It initially rebounded with the news but fell 4% late on Friday afternoon, cutting its year-to-date gains to 8%.
Stock splits are a common move for some companies whose shares are skyrocketing, and they make it easier for small investors to buy. Amazon (AMZN) And the owner of Google the alphabet (Google)whose shares are trading in four numbers, recently Announcing stock split plans. And the Tesla (TSLA)which split its shares in August 2020, is Consider another split Now that its stock is back at over $1,000 a share.
GameStop is trading at about $160 per share. At this current price, individual shares should cost about a third – or about $48 – after the split because GameStop is looking to multiply its number of shares by 3.33.
The company has been busy taking steps that investors are watching closely. GameStop President Ryan Cohen, co-founder of the online pet supplies retailer rubbery (CHWY), recently bought more shares. Gamestop is also investing in NFTs and other crypto and blockchain initiatives, and recently hired two former Amazon executives to serve as its CEO and CFO.
several more stock meme It fell Friday despite the GameStop news split. shares movie theater Series AMC (AMC) It was down about 5% in late morning trade. So it was stock Haycroft Miningwhich is a small mine for gold and silver surge after that AMC bought a stake in it.
shares bed bath behind (BBBY)Another retailer Cohen recently invested indropped quite a bit.
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