GameStop's 4-For-1 Stock Split Tries To Lure Investors

GameStop's shares are about to get a lot cheaper. The company's board of directors approved a 4-for-1 stock split on Wednesday, which will take effect on July 22.

Photo Insert: The rise of no-fee trading programs like Robinhood, E-Trade, and others has increased demand for meme stocks like GameStop and AMC.

The overall value of GameStop shareholders' investment will remain unchanged, but they will own four times as many shares when all is said and done, David Goldman reported for CNN Business.

Depending on where GameStop's stock trades in the next weeks, that should push the stock price back to $30 – around where it was before meme-stock fever sent shares as high as $347 in January 2021. Following the revelation on Thursday, shares of the meme stock darling skyrocketed.

Like other meme stocks, GameStop is having a difficult 2022. The stock dropped earlier this year; however, it has subsequently recovered, Jordan Valinsky also reported for CNN Business. The stock is down around 14% this year, following the overall market decline.

Even at a third of its all-time high, GameStop may still be a little costly for many individual investors.

Making the shares cheaper may increase demand and provide the company with additional liquidity. Although large institutional investors are usually undeterred by high share prices, individual investors may be put off by them.

The rise of no-fee trading programs like Robinhood, E-Trade, and others has increased demand for meme stocks like GameStop and AMC, all while helping make stock splits more appealing in recent years.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic