Netflix Share Split Set for Next Month's Release

The Netflix share split is finally happening. The company has announced that it will split its shares in mid-November, with the exact date set for the 22nd.

This move is expected to make Netflix shares more accessible to individual investors. The current price of the shares will be adjusted accordingly.

The split is a common practice among publicly traded companies, aiming to increase the liquidity and affordability of their shares.

Netflix will execute a seven-for-one stock split next month, making its shares more affordable to a bigger pool of investors.

The split will award six additional shares for every share held by Netflix stockholders as of July 2. This means that if you own one share now, you'll get six more shares after the split.

The price of Netflix's stock will drop sharply to account for the issuance of the additional shares. After the split, Netflix's stock is likely to initially trade at one-seventh of its previous price.

Based on Tuesday's closing price of $681.19, Netflix's stock would drop to slightly below $100 after the seven-for-one split. This is a significant drop, but the company's market value won't be affected by the split.

The split mirrors one that iPhone maker Apple pulled off slightly more than a year ago when its stock was also trading above $600. Since its split, Apple's stock has surged by 38 percent.

Netflix's stock has been among the market's top performers during the past two-and-half years, adding 29 million subscribers worldwide while expanding into dozens of countries and winning awards for its original programming.

The company's shares have increased by more than sevenfold since the end of 2012, while the S&P 500 has climbed by nearly 50 percent.