Netflix is splitting its stock 7 ways

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Netflix is splitting its stock seven ways.

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The company announced this in a statement Tuesday, saying the stock dividend will be payable on July 14 to those who own stocks as at July 2.

What this means is that shareholders will continue holding the same percentage stake in the company, but one share becomes seven.

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Stock splits do literally nothing to change the financial or operating structures of the company.

Typically, companies split their stocks when the price becomes quite high.

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Netflix closed at $681.19 a share and rallied more than 2% in after-hours trading. The stock is up 99% year-to-date, and 55% over the past 12 months.

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