Stock Split Info
To assist stockholders that may have questions related to GameStop's stock split announcement on February 12, 2007, we have compiled information on what we believe will be the most frequently asked questions related to our stock split. If your question is not addressed, please feel free to contact our transfer agent, Computershare at the address indicated below or send a message to GameStop's Investor Relations Department at email@example.com.
A: This action reflects the confidence GameStop has in the future of our buy, sell, trade model as well as our ongoing efforts to increase stockholder value.
A: A 2-for-1 split means the investor will have twice as many shares as before, at half the market price. The split does not change the aggregate value of the shares you own. The split increases the number of shares outstanding, but also proportionately lowers the value of each share, so that the total value of all shares combined initially remains the same. The end result is that you own more shares, at a lower price per share, equaling the same total value.
As of the record date (February 20, 2007), if an investor owns 100 shares of GME common stock and the market price is $60.00/share, that investor's total value is $6,000.00. After the split, the investor will have 200 shares of stock, but the stock price will be cut in half to $30.00/share. The investor's total investment value in GME remains the same at $6,000.00 until the stock price moves up or down, and each investor's proportionate interest in GME will be unchanged as a result of the stock split.
A: March 19, 2007 is the date that GME common stock will trade on the NYSE at the new adjusted price.