Stock Split: Netflix to divide one share into 10 for the first time in a decade

Streaming giant Netflix Inc. announced a 10-for-1 stock split on Thursday, October 30, meaning it will be splitting one existing share into 10.

The company has fixed the record date for the stock split to be November 10. In a statement, Netflix said that existing shareholders as of November 10 will be eligible to get nine additional shares for each one they own. The allotment will take place on November 14, and the stock will begin trading ex-split from November 17.

Netflix said that the move is to ensure that the market price of the company resets to a range that will be more accessible to retail investors, and to employees who participate in the company's stock options program.

Currently, Netflix is one among the 10 S&P 500 constituents, whose share price is in excess of $1,000.

A stock split only means that more shares are available to the shareholder at a lower price. While the quantity increases, the price remains the same, as do all other fundamentals of the company.

This is the third time that Netflix has announced a stock split, with the previous instances being in 2004 and in 2015.

Shares of Netflix gained 3% in extended trading after the announcement to $1,120.27. The stock is still down by 16.5% from its record high of $1,341.