Nintendo Is Now Considering A Stock Split

Nintendo Is Now Considering A Stock Split

Last week, Nintendo announced it would buyback up to 1 million shares on the Japanese stock market after several banks, including the Bank of Kyoto, announced they would sell about 2.79 million shares.

For many years, retail investors, aka ordinary people, have been asking Nintendo to split its stock. This is because it is very expensive to purchase Nintendo stock on the Tokyo exchange. Stocks are required to be purchase in lots of 100 shares. At about USD270 per share, this means the retail investor has to fork out USD27,000, a very hefty investment.

With a stock split, the number of shares will be split into say, 10, and the price of each share will be divided by 10. This would make Nintendo shares more affordable, as one lot would only cost a retail investor USD2700.

While the company has refused to perform a stock split for many years, this might be changing in the near future. A Nintendo spokesperson told RT that a stock split is now “considered an option”, so we have to wait and see what happens in the next few months.

What do you think? Let us know in the comments.