GameStop $GME shocked retail investors after the bell on March 31st by announcing a stock split in the form a dividend. This news sent GameStop rocketing after hours and created a huge buzz in the retail investor communities. GameStop stock has already been in the headlines over the past week along with other names like AMC Ent. because of their impressive moves in the last few trading sessions. The popular meme stock GameStop filed an 8-K with the Securities exchange commission which showcased the plans for the stock split and stock dividend investors should be ready to receive.
What is a Stock Split?
A stock split defined by Investopedia is when “
A stock split happens when a company increases the number of its shares to boost the stock’s liquidity. Although the number of shares outstanding increases by a specific multiple, the total dollar value of all shares outstanding remains the same, because a split does not fundamentally change the company’s value.
The most common split ratios are 2-for-1 or 3-for-1 (sometimes denoted as 2:1 or 3:1), which means that the stockholder will have two or three shares, respectively, after the split takes place for every share held beforehand.”
GameStop Dividend
The video game retailer plans to increase the number of class A common stock from 300,000,000 to 1,000,000,000 “through an amendment to the company’s third amended and restated certificate of inc. in the form of a stock dividend”. This came as great news to GME and AMC stock shareholders, as this is something that has been rumored and talked about in the community for many many months now. GameStop has also entered the NFT space and has rumors of even launching their very own project very soon.
AMC Stock Dividend
With the news of GameStop’s new stock split and dividend shaking up the markets, it has investors in other meme names also excited more than ever for the future. The AMC stock community has been very vocal in their interest of a future stock dividend to reward patient shareholders for their loyalty in holding the stock through the ups and downs, but also because issuing a dividend would likely include doing a total AMC stock share recount. There is speculation that short sellers are naked shorting AMC stock and with the implantation of a total share recount it could put the share count transparency the AMC Stockholders are desperately asking for. Only time will tell what the future holds for AMC , GME and other names but the future seems to be bright for those whom believe in their long term missions.