Why We’re Selling NVIDIA Shares After the Split

Don’t study finance if you’re the sort of person who detests boredom. Some of the topics are absolutely dreadful, not to mention the teachers. They’ll make you do things like manually calculate the variance of a portfolio, something that sounds about as fun as it looks.

If you’re a glutton for punishment, do a Master’s in Finance, during which you will learn a handful of useful things based on studies that someone spent too much time on. For example, stocks typically outperform the broader market from the time they announce a split until shares start trading at split-adjusted prices. NVIDIA (NVDA) has been no exception to that rule, with shares soaring since the announcement of their planned share split.

The NVIDIA Stock Split

On May 21, 2021, at 9:00 AM Eastern Time, NVIDIA announced their stock split. (If you’re the sort of person who thinks that a $10 stock is “cheaper” than a $100 stock, here’s a refresher on stock splits.) The terms of the split were simply as follows:

Each NVIDIA stockholder of record at the close of business on June 21, 2021, will receive a dividend of three additional shares of common stock for every share held on the record date, to be distributed after the close of trading on