Business

Netflix 7-for-1 stock split set for July

Netflix will execute a seven-for-one stock split next month in a widely anticipated move designed to make the internet video service's shares more affordable to a bigger pool of investors.

Stock in the video streaming company could then fall to under $100 a share

Netflix has set its 7-for-1 stock split for July 2. (Scott Eells/Bloomberg)

Netflix will execute a seven-for-one stock split next month in a widely anticipated move designed to make the Internet video service's shares more affordable to a bigger pool of investors.

The split has been expected since Netflix stockholders voted two weeks ago to authorize the company to substantially increase the number of its outstanding shares. Netflix hadn't specified the size or timing of the split until Tuesday.

The split will award six additional shares for every share held by Netflix stockholders as of July 2.

When the split occurs July 14, the price of Netflix's stock will drop sharply to account for the issuance of the additional shares.

Netflix's stock would fall below $100 if the split were to occur at the stock's Tuesday closing price of $681.19.

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