GameStop Corp (NYSE:GME) is planning a 4-for-1 stock split after it was approved by its board yesterday.
Shareholders who own the ‘meme-stock’ at the close of the market on 18 July will receive a dividend of three additional shares for each of the company’s Class A common stock.
According to the company, the dividend will be distributed after trading closes on 21 July and will start trading the following day on a split-adjusted basis.
A company will usually issue a stock split when companies want to increase the number of shares in circulation to make them more affordable to investors.
Currently, GameStop shares are valued at US$115.54.
GameStop received its meme-stock tag after a group of retailer investors through Reddit coordinated a squeeze on the stock, sending its price soaring.
Since then, the stock has incurred volatile daily movements.