Netflix approves 10-for-1 forward stock split

Netflix’s board on Thursday approved a 10-for-1 forward stock split that will give each shareholder of record nine additional shares for every share owned, the company said. Shareholders of record at the close of trading on Monday, Nov. 10 will receive the extra shares after the close on Friday, Nov. 14, and trading on a split-adjusted basis is expected to begin at market open on Monday, Nov. 17. Netflix shares closed at $1,089 on Thursday and rose roughly 2 to 3 percent in after-hours and extended trading to about $1,120.

Netflix said the split is intended to “reset the market price of the Company’s common stock to a range that will be more accessible to employees who participate in the Company’s stock option program.” The company also noted the move could make the stock more affordable to outside investors, though the total value of each shareholder’s stake will not change because the split merely increases the number of shares while reducing the per-share price proportionally.

The split will be implemented through an amendment to Netflix’s amended and restated certificate of incorporation. It follows two prior stock splits, most recently a seven-for-one split that took effect...