Attention all Shopify investors! The wait is finally over as the e-commerce giant has announced its highly anticipated stock split. This exciting news has sent ripples through the investment world, and for good reason. If you’re wondering what a stock split is and how it will impact your shares – look no further! In this blog post, we’ll explore everything you need to know about Shopify’s upcoming stock split date, including how to trade after the split, so buckle up and let’s dive in!

Shopify announces stock split

Shopify, the Canadian e-commerce company that has taken the world by storm, announced on April 28th, 2021 that it will be implementing a stock split. The announcement came after Shopify’s shares hit an all-time high in recent months and investors eagerly awaited news about any potential changes to the company’s stock structure.

The decision to split Shopify’s shares is intended to make them more accessible to retail investors who may have been priced out of investing in this high-growth technology company. With each existing share being split into five new shares, this move will increase the number of outstanding shares from approximately 92 million to around 460 million.

This is great news for current shareholders as well since they will receive four additional shares for each share they already own. This can potentially lead to increased liquidity and demand for their stocks while also lowering its price per share.

Shopify’s announcement regarding its upcoming stock split date reflects a positive outlook for both current and future shareholders alike. By making its stocks more affordable and accessible than ever before, Shopify continues to demonstrate why it remains one of the most innovative companies in today’s highly competitive tech industry.

What is a stock split?

A stock split is a corporate action that involves dividing the existing shares of a company into multiple shares. For example, in a 2-for-1 stock split, each share held by an investor will be replaced with two new shares. The total value of the investment remains unchanged since the number of shares has increased while their individual price has decreased proportionally.

Stock splits are usually done to make it easier for investors to buy and sell shares or to increase liquidity in the market. Companies may also choose to do a stock split if they believe that their current stock price is too high, which could discourage small investors from buying or trading their stocks.

However, it’s important to note that a stock split does not affect the underlying value of the company nor its overall market capitalization. It simply adjusts the number of outstanding shares and their prices per share.

Stock splits can be seen as positive events for companies and shareholders alike as they often lead to increased trading volume and liquidity in markets.

What is the impact of a stock split on shareholders?

When a company announces a stock split, it can have an impact on its shareholders. One of the most notable impacts is the increase in available shares. This means that existing shareholders will receive additional shares, but the value per share will decrease proportionally.

However, this does not necessarily mean that shareholders’ net worth will be affected negatively. In fact, as more people buy into a company due to lower prices per share, demand for those shares may increase and lead to higher overall market capitalization.

Another potential benefit of a stock split is increased liquidity. With more shares available at a lower price point, trading activity may also increase. This could make it easier for investors to buy and sell Shopify stock when they want to.

While there are some changes associated with a stock split announcement from Shopify or any other company – including decreased value per share – there can also be positive outcomes such as higher market capitalization and improved liquidity for investors who choose to hold onto their shares post-split.

How to trade Shopify stock after the split

Trading Shopify stock after the split can seem like a daunting task, but it’s actually quite simple. First and foremost, familiarize yourself with the new stock symbol which will be SHO for Class A shares and SHOPV for Class B shares.

Next, determine your trading strategy whether you plan to buy or sell Shopify stocks. If you’re planning to buy stocks, consider waiting a few days after the split as there may be fluctuations in price due to market volatility. Conversely, if you’re planning on selling stocks post-split then monitor the price closely and make sure that you’re comfortable with your return.

If you are an existing shareholder of Shopify before the split announcement date then know that your number of shares has increased proportionately without changing its total value. Thus, it would be advisable to consult your financial advisor before selling any pre-existing shares as this may impact your overall investment portfolio.

Always keep up-to-date by monitoring news about Shopify such as earnings reports or company updates which could have an impact on share prices post-split. Remember: investing comes with risks so conduct thorough research and make informed decisions based on facts rather than emotions or hype around certain companies or industries.


The Shopify stock split is an exciting development for both existing and potential investors. By making shares more accessible and affordable, Shopify hopes to attract a wider range of shareholders while also increasing liquidity in the market.

As with any investment decision, it’s important to do your research and consider all factors before buying or selling stock. However, if you’re interested in investing in one of the fastest-growing e-commerce companies on the market today, now might be a great time to take a closer look at Shopify.

By understanding what a stock split is, how it impacts shareholders and how to trade after the split takes place; you’ll be better equipped to make informed decisions about purchasing stocks in this popular e-commerce platform.

With that said, only time will tell how successful this move will be for Shopify – but given their track record so far, we wouldn’t bet against them!

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