The executives over at GameStop Corp (NYSE: GME) appear to be taking a page out of Elon Musk’s playbook. The firm last night announced that it is seeking shareholder approval to increase the number of authorized shares outstanding in the company.
The approval is being sought to enable the company to conduct a forward stock split. Presently, the firm is seeking permission to expand its share count from 300 million to 1.0 billion. The approval would enable the company to conduct a share split ratio of up to three for one, although the company did not provide details on what ratio it intends to conduct the forward split at.
The split is to be conducted via a stock dividend.
The filing was well received by investors, with the company currently gaining 15% in pre-market trading following the revelation.
Tesla (NASDAQ: TSLA) conducted a similar move on Monday, announcing plans for a stock split just two years after it conducted a 5 for 1 split in August 2020. The company traded up 6.15% in premarket trading on that news, and is currently up 6.6% on the week.
GameStop Corp last traded at $166.58 on the NYSE.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The Economy That Cried Wolf (Of Wall Street)
(title card concept stolen from Martin Scorsese and Jesse Hawken) This past March, when the...