A screen displays the GameStop logo and business information on the New York Stock Exchange (NYSE) floor on March 29, 2022.
Brendan McDermid | Reuters
Shares of GameStop rose more than 8% in extended trading on Wednesday after the retailer said its board of directors approved a 4-by-1 share split.
Shareholders who own the shares at the close of trading on July 18 will receive a dividend of three additional shares for each of the company’s Class A common shares, the retailer said. The dividend will be distributed once the trading closes on July 21 and will begin trading the next day in an installment-adjusted manner.
A stock split is issued when companies want to increase the number of shares and make them more affordable for investors. On Wednesday, GameStop closed at $ 117.43 per share.
So-called meme stocks have seen one-day volatile moves since it caught attention last year, as a group of retail investors coordinated a small push on the shares, boosting their higher price. Since then, shares have retreated from their highs, falling by more than 20% so far.