Stock splits have become something of a rarity in the stock market these days, especially in the tech sector. For a number of reasons, large-cap companies have been reluctant to split their stocks, even though there are some that many believe would be well-served by a healthy stock split. But one of the few tech giants that hasn’t shied away from a stock split is Netflix, Inc. (NASDAQ:NFLX). This has led many to question whether there will be a NFLX stock split 2017. More specifically, many are asking, “When will a Neftlix stock split date 2017 be released?”
How stock splits work
Let's say a company decides to move forward with a 2-for-1 stock split. In this case, current shareholders would receive an additional share of stock for each one already held. If a company has 20 million shares outstanding and decides to enact a 2-for-1 stock split, it will wind up with 40 million shares after the split. The value of each share, however, will be reduced by 50%. Another way to think of it is that in a 2-for-1 stock split, the price of the shares changes so that every two shares equal the original value of a single share before the split. While a stock split will increase the total number of shares outstanding for a given company, it won't affect that company's market capitalization, which is the total market value of its shares outstanding.