Those investors could have already bought Nvidia anyway, regardless of the split. That means someone with $200 could purchase 1/4 of a share today if they wanted.īecause fractional shares put expensive stocks within reach of any investor, a split shouldn't open up a new customer base of people with lower account balances. Instead, brokers that allow fractional shares make it possible for any investor - even those with a few dollars - to specify how much they want to invest. Someone with only $200 no longer needs to wait for Nvidia to split in order to buy a stake in the company. See, fractional shares allow anyone to buy fractions of shares, or partial shares, even if they don't have enough investment capital to purchase a full share. However, thanks to fractional shares, it's becoming less and less likely that a split will have even this effect.

Still, the reduction in the per-share price can sometimes have a short-term impact on the stock price due to the company's shares seeming more accessible. Some investors also perceive a stock that costs $200 per share as being 'cheaper' than one that costs $800, even though that's not a good way of assessing whether a company's shares are worth their price. Now, companies sometimes split their shares in hopes of driving up demand since more people can theoretically afford to buy shares that cost $200 each instead of $800. Fractional shares reduce the impact of stock splits

When is nvda stock split