Netflix on Thursday said it is planning a 10-for-1 stock split to happen next month.
The company said the purpose of the split would be reset the market price and make it more accessible to employees who participate in its stock option program.
The split, which dilutes the share price by tenfold, will also make it more affordable to retail investors looking to put their money into Netflix. The split doesn’t materially change the market capitalization, or value, of the company.
Under the plan, shareholders of record on Nov. 10 will receive nine additional shares for every share they hold. The shares will be issued after the close of trading on Nov. 14.
Shares rose 3% to $1,122.49 in after-hours trading. After the split, the share price would be closer to the $112 range, depending on where it moves to after Nov. 14.
