What is a stock split and why is NIKE implementing one?

A stock split is a corporate action where a company divides its existing shares into multiple shares. NIKE is implementing a two-for-one stock split, meaning each existing share will become two shares. This is being done as a 100 percent stock dividend. The primary goal of a stock split is typically to make the stock price more affordable for a wider range of investors, which can increase liquidity and potentially attract new shareholders.

How will the stock split affect the value of my investment?

The stock split itself does not change the total value of your investment or your proportional ownership in NIKE. If you own 100 shares before the split, you will own 200 shares after the split. However, the price per share will be halved, so the total market value of your holdings remains the same immediately after the split. For example, if your shares were trading at $100 each, they would trade at approximately $50 each after the split.

When will I receive the additional shares from the stock split?

The stock dividend, which constitutes the two-for-one stock split, is payable on December 23, 2015. Shareholders who are on record as of the close of business on December 9, 2015, will be eligible to receive these additional shares.

Do I need to take any action to receive the new shares?

Generally, no action is required from shareholders to receive the shares from a stock split or stock dividend. If your shares are held in a brokerage account, the additional shares will be automatically credited to your account. If you hold physical stock certificates, NIKE's transfer agent will provide instructions on how to exchange them for the new share amount.

NKE 8-K SEC Disclosure — Nov 19, 2015

Summary

NIKE, Inc. announced on November 18, 2015, through a press release filed with the SEC, that its Board of Directors has approved a two-for-one stock split for both its Class A and Class B common shares. This strategic move, structured as a 100 percent stock dividend, is set to take effect on December 23, 2015, with shareholders of record on December 9, 2015, being eligible to receive the additional shares. This stock split is primarily designed to make the company's stock more accessible to a broader range of investors by lowering the per-share price. While it does not change the fundamental value of an investor's holdings, it can enhance trading liquidity and potentially attract new investors. For existing shareholders, this means their total number of shares will double, while the price per share will be halved, maintaining their proportional ownership in the company.

Key Highlights

1NIKE, Inc. announced a two-for-one stock split for both Class A and Class B common shares.
2The stock split will be executed as a 100 percent stock dividend.
3The effective date for the stock dividend distribution is December 23, 2015.
4Shareholders of record as of the close of business on December 9, 2015, will be entitled to the stock dividend.
5This action aims to increase stock accessibility and potentially enhance trading liquidity.
6The split does not alter the total market capitalization or an investor's proportional ownership in NIKE.

NIKE, Inc. 8-K Report, Corporate Update (Nov 19, 2015)

Summary

Key Highlights

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