Overview
- Netflix's board approved the 10-for-1 split at the end of October, and the stock rose roughly $30 per share after the announcement.
- Split-adjusted trading is scheduled to start on Nov. 17, with record and distribution dates set in mid-November per company filings.
- A stock split changes the share count and per-share price by the same factor but leaves market capitalization and operations unchanged.
- Companies frequently cite accessibility for employees and retail investors as a goal for lowering the nominal share price.
- Bank of America research shows stocks that split have averaged more than 25% gains in the following 12 months versus about 12% for the S&P 500, while reverse splits are generally seen as distress signals.