Fidelity portfolio lost money from stock split?
Summary:
- The user is confused about their investment after a 10-for-1 stock split of NVIDIA shares, as their total gains appeared to decrease by several hundred dollars.
- The representative explains that the stock split increases the total number of shares while maintaining the shareholder’s proportional ownership, resulting in a lower price per share.
- They clarify that the balance may show temporary fluctuations during the share allocation process following the split.
- Additional resources about the NVIDIA stock split are provided for further understanding.
Here’s the full thread
After the split my 1 NVIDIA share got split into 10. My total gain since purchase appeared to go down several hundred dollars. Did I lose money or not?
Hello there, @biggbird42. I’ll be glad to help you.
NVIDIA announced a 10-for-1 forward stock split of NVIDIA’s issued common stock to make stock ownership more accessible to employees and investors. The stock split took place early this morning and the stock will start trading at its lower, post-split price on Monday, June 10.
Please know that the allocation of the shares is still underway. You may see a temporarily inflated/deflated balance as the shares are allocated.
Learn more about the NVDA stock split here: https://www.reddit.com/r/fidelityinvestments/comments/1d9hmcr/nvidia_nvda_announced_that_their_stock_will_split/
Please note that “this results in an increase in the total number of shares outstanding for the company, though there is no change in a shareholder’s proportional ownership. Normally, a stock split will reduce the price per share of each share in proportion to the increase in shares.”
If you have additional questions, please let us know. 🟢