6:1, 5:1 Stock Splits: Two Mega ETFs Related To Nvidia, Meta Fall On March 13 As They Turn Ex-Split

Artificial Intelligence (AI) stocks are among the much-awaited shares sub-division, especially by two AI giants Meta Platforms and Nvidia. However, both mega companies have not made any such announcements. Nevertheless, two ETFs related to Nvidia and Meta turned ex-split on March 13 for their ratio of 6:1 and 5:1. The two ETFs traded in the red.

At the time of writing, during the trading session of March 13, GraniteShares 2x Long NVDA Daily ETF (NVDL) slipped by over 6.5% to trade at $40.71. The day's range is at 40.30 - 42.84 dollars.

Similarly, GraniteShares 2x Long META Daily ETF (FBL) shed 1.8% to trade at $27.56. The day's trading range is between 27.00 and 28.11.

The two ETFs split on Wednesday which is carried by GraniteShares. While NVDA Daily ETF is splitting into 6 smaller shares, the one Meta Daily ETF is being subdivided into 5 new shares.

The total market value of the shares outstanding will not be affected as a result of these splits. After the close of the markets on March 12, 2024 (the "Payable Date"), each Fund will effect a forward split of its issued and outstanding shares, it said.

As a result of these share splits, shareholders of each Fund will receive six or five, as applicable, shares for each share held of the applicable Fund as indicated in the table above. Accordingly, the number of each Fund's issued and outstanding shares will increase by the approximate percentage indicated above.

The tickers and CUSIPs will not be affected by the transactions.

Further, GraniteShares earlier said that all share splits will apply to shareholders of record as of the close of the NASDAQ Stock Market. (the "NASDAQ") on March 11, 2024 (the "Record Date"), payable after the close of the NASDAQ on the Payable Date. Shares of the Funds will begin trading on the NASDAQ on a split-adjusted basis on March 13, 2024 (the "Ex-Date").

On the Ex-Date, the opening market value of each Fund's issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the share split. However, the per share net asset value ("NAV") and opening market price on the Ex-Date will be approximately one-sixth or one-fifth, as applicable, for the Funds. The table below illustrates the effect of a hypothetical six-for-one or five-for-one split on a shareholder's investment, it said.

GraniteShares is an independent ETF issuer headquartered in New York City.

Meanwhile, Nvidia Corp's stock price continued to drop and currently traded at $890.86 down by 3.13%. The day's range is $884.35 to $912.07. The stock was at $919.13 on the previous day.

In the case of Meta, the stock traded on Nasdaq at $496.15 down by 0.72%. The stock touched an intraday high and low of $500.98 and $491.03 respectively. On the previous day, the stock was at $499.75.

In typical terms, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

Disclaimer: The write-up highlights the latest development in a stock split, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.