01—Abstract
Summary
Summary of the 8-K filed October 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Lam Research Corporation (LRCX) has filed an 8-K report detailing a significant corporate action: a ten-for-one forward stock split.
This split, effective October 2, 2024, will increase the number of outstanding shares by a factor of ten, while proportionally increasing the authorized share capital from 400 million to 4 billion shares. Importantly, this action does not alter the par value of the common stock or the fundamental rights and preferences of shareholders. This strategic move aims to make the company's stock more accessible to a broader range of investors by reducing the per-share trading price.
The stock split is expected to take effect for trading purposes on October 3, 2024, under the same ticker symbol 'LRCX'. Investors holding LRCX will see their share count multiplied by ten, with corresponding adjustments to equity awards and options.
02—Key points
Key Highlights
- Lam Research (LRCX) announced a 10-for-1 forward stock split, effective October 2, 2024.
- The stock split is designed to make the common stock more accessible to a wider investor base.
- Trading on a split-adjusted basis is expected to commence on October 3, 2024, under the existing ticker 'LRCX'.
- The total number of authorized common shares has been increased from 400,000,000 to 4,000,000,000.
- The par value of the common stock remains unchanged at $0.001 per share.
- Shareholder approval was not required for this amendment to the Restated Certificate of Incorporation.
- All outstanding equity awards, incentive plans, and existing agreements will be proportionally adjusted.
03—Questions
Frequently Asked Questions
What is a stock split and why is Lam Research doing it?
A stock split, in this case a 10-for-1 forward split, means that for every one share of common stock an investor currently owns, they will receive nine additional shares, resulting in a total of ten shares. Lam Research is implementing this to make its stock more affordable and accessible to a broader range of investors by lowering the per-share trading price. It does not change the fundamental value of an investor's holdings.
When will the stock split take effect for trading?
The stock split became effective at 5:00 p.m. Eastern Time on October 2, 2024. Trading on a split-adjusted basis is expected to commence at the market open on October 3, 2024.
How will this stock split affect the number of shares I own and their value?
If you owned 'X' shares before the split, you will now own '10X' shares. The total market value of your holdings should remain the same immediately after the split, as the price per share will be adjusted proportionally (divided by ten). For example, if a share was trading at $1000, it would trade around $100 after the 10-for-1 split.
Will my rights as a shareholder change after the stock split?
No, the stock split does not modify any rights or preferences of the shares of common stock. Proportionate adjustments will be made to equity awards, incentive plans, and exercise or conversion prices where applicable.
04—Continue