2024-06-24 20:17:00 ET
High-profile stock splits are en vogue, it seems. Just days after Nvidia split its shares 10-for-1, Broadcom announced it would follow suit. In fact, several big names are choosing to split theirs this summer. After Nvidia's stock split, maybe the most anticipated is fast-casual restaurant pioneer Chipotle (NYSE: CMG) .
Shares of Nvidia are up about 10% since it executed the split on June 7. Can Chipotle investors expect a similar bump in stock price? Let's consider a few basics first.
A stock split , or more specifically a forward stock split, in this case, is when a company issues new stock to shareholders, increasing the number of shares on the market. The shares then begin trading at a lower price. It's done proportionately so that the total value of an investor's portfolio doesn't change.
For further details see:
Chipotle's 50-for-1 Stock Split Is Coming. Here's What Investors Need to Know