GameStop stockholders will see their holdings quadruple.
GameStop said Wednesday it has approved a 4-for-1 stock split that will take place later in July. The company first announced plans for the split in March.Â
A stock split doesn't directly impact the value of a company but divides existing shares into smaller pieces. At the close of business on July 18, stockholders will receive three additional shares for every one share they have via a stock dividend. Trading will begin on a stock split-adjusted basis on July 22, GameStop said.
GameStop's stock price jumped in after-market trading to $125.65 after its announcement Wednesday. Â
The video game retailer rocked the stock market for one week in early 2021 when its share prices went through the roof, fueled by online day traders buying shares of the company in droves. The drama that followed led to investment app Robinhood being targeted by government regulators, hedge funds going under and documentaries being made to explain what happened.Â
Several tech giants have unveiled stock splits in recent years. Last month, Amazon split its shares 20-for-1, and Tesla plans a shareholder vote on a 3-for-1 split at its annual meeting in August.Â
Correction, July 13: Tesla plans a shareholder vote on a 3-for-1 split at its annual meeting in August.Â
