Are you curious about the recent news of Shopify’s stock split? As a leading e-commerce platform, Shopify has gained immense popularity among investors in recent years. But what exactly does a stock split mean for current and potential shareholders? In this blog post, we will explore all the important aspects of Shopify’s upcoming stock split in 2022. So buckle up and get ready to learn everything you need to know about buying and owning shares in one of the most successful companies on the market!

What is a stock split?

A stock split is a corporate action that involves dividing the existing shares of a company into multiple smaller units. This reduces the price per share while increasing the number of outstanding shares, resulting in no change to the total value of all outstanding shares.

Stock splits are usually done to make a company’s stock more affordable for retail investors and increase liquidity in trading. For example, if you owned one share worth $500 before a 2-for-1 stock split, you would now own two shares worth $250 each.

Companies can choose different ratios for their stock splits depending on their specific goals and circumstances. Some companies may opt for reverse stock splits if they want to reduce the number of outstanding shares and boost investor confidence.

It’s important to note that a stock split does not affect a company’s market capitalization or its overall financial performance. Rather, it simply adjusts the price per share and number of outstanding shares available for trading.

What is Shopify?

Shopify is an e-commerce platform that allows entrepreneurs and businesses to create their own online stores. It offers a user-friendly, all-in-one solution for selling products and services online, without the need for technical expertise.

With Shopify, users can easily design their storefronts with customizable templates and themes. The platform also provides tools for managing orders, inventory, shipping, payments and more. This makes it easier for small business owners to focus on growing their businesses rather than worrying about the technical details of running an online store.

In addition to its user-friendly interface and powerful features, Shopify also has a large community of developers who create apps and plugins that extend its functionality even further. This means that merchants can add new features or integrations as they grow their businesses.

Shopify’s popularity has grown rapidly in recent years due to its ease of use and scalability. Whether you’re just starting out or looking to expand your existing business online, Shopify is a great choice for anyone looking to sell products or services through an e-commerce website

Why is Shopify doing a stock split?

Shopify has been on a remarkable journey, growing exponentially since its inception in 2004. Its shares have also grown astronomically over the years from around $30 per share to close to $1500 per share as of June 2021.

One reason why Shopify is doing a stock split is to make its shares more affordable for retail investors. This will enable smaller investors who may not be able to afford the high price tag of individual stocks like Shopify’s, an opportunity to invest and own a piece of the company.

Another reason for the stock split could be that it increases liquidity in the market. With more shares being available, there will likely be more trading activity, which can help improve overall market efficiency.

Furthermore, by increasing the number of outstanding shares through a stock split, Shopify may potentially attract even larger institutional investors who would typically shy away from investing in companies with fewer outstanding shares.

There are several reasons why Shopify is doing a stock split but making its shares more accessible and attractive to both retail and institutional investors appears to be at the top of their list.

How will the stock split affect current shareholders?

The upcoming Shopify stock split will affect current shareholders in a few ways. First, the number of shares held by shareholders will increase as a result of the split. This means that the value of each individual share will decrease, but the total value of all shares held will remain unchanged.

For example, if an investor holds 100 Shopify shares worth $1,000 each before the split, they would hold 200 shares worth $500 each after the split. The total value remains at $100,000.

Secondly, some investors may be attracted to buying more shares because of their lower price point after the split. This could potentially drive up demand and increase overall shareholder value over time.

It’s important to note that while a stock split does not change a company’s underlying fundamentals or long-term outlook, it can often lead to increased market interest and attention from institutional investors who previously may have found investing in high-priced stocks less attractive.

Current shareholders should expect an increase in their number of holdings while also anticipating potential market changes resulting from increased investor attention post-split.

When will the stock split happen?

Shopify announced its plans to do a stock split in June 2021, but the actual date of implementation is still unknown. The company has not released an exact timeline for when the split will occur, but they have stated that it will happen sometime in 2022.

The reason for this lack of specificity could be due to several factors. It’s possible that Shopify is waiting for market conditions to stabilize before proceeding with the split. Additionally, there may be logistical considerations involved in executing such a large-scale transaction.

Despite the uncertainty surrounding the timing of the stock split, investors are eagerly anticipating its arrival. Shopify has been one of the top-performing stocks over the past year and a half, and many believe that a lower share price resulting from a split could attract even more buyers.

In any case, current shareholders should keep an eye on Shopify’s announcements regarding their plans for the stock split. While it may not happen as quickly as some would like, it seems likely that it will take place at some point next year.

How to buy Shopify shares

Buying Shopify shares is a popular choice among investors who believe in the potential growth of e-commerce. If you’re interested in buying Shopify shares, there are several ways to do so.

One way to buy Shopify shares is through a brokerage account. You can open an account with an online broker or traditional brokerage firm. Once your account is set up, you can place an order for Shopify stock.

Another option is to invest in exchange-traded funds (ETFs) that hold Shopify stock. ETFs offer diversification and may be less risky than investing directly in individual stocks.

If you prefer a more hands-off approach, you can also consider investing in mutual funds that hold Shopify shares. Mutual funds are managed by professionals who choose stocks on behalf of their investors.

Before investing in any type of security, it’s important to do your research and understand the risks involved. Consider consulting with a financial advisor if you need help making investment decisions.

Buying Shopify shares requires setting up a brokerage account or investing indirectly through ETFs or mutual funds. It’s essential to understand the risks and conduct thorough research before making any investment decisions.


The Shopify stock split in 2022 is a strategic move to increase accessibility and liquidity for its shares. The company’s growth prospects remain strong, and this move will make it easier for more investors to buy into the company. Current shareholders need not worry about losing their investment value as the share price may decrease temporarily due to the split, but they will own more shares that are worth less individually.

If you’re interested in buying Shopify stocks after its anticipated stock split, make sure you do your research beforehand. Take a look at recent financial reports and analyst predictions before investing your money.

This development shows that Shopify is serious about making its shares accessible to both small-scale and large-scale investors alike while remaining committed to growing the business long-term. With these strategies in place, we can expect continued success from one of Canada’s most innovative companies in e-commerce today!

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