In an effort to make their stocks more attractive to investors, US retailer GameStop announced a two-for-one stock split. What happens in this scenario is, say for example, you have 100 shares of GameStop having a US$ 4 value per share, the total value is US$ 400. With the two-for-one stock split, you will now have 200 shares of GameStop with a value of $ 2 each, still equivalent to your original value.

Although there'll be no change in value and income, the "share pie" is sliced into smaller pieces which means there'll be more shareholders for the company.

This is the first of its kind since 2002 for GameStop. The company will now have 152 million commonshares and the split will take place on February 20  while the share distribution is set for March 16. According to its CEO, R. Richard Fontaine, this will make the company's shares more attractive to potential investors. He continued by saying:

This stock split also reinforces the confidence that the board and I have in the GameStop buy, sell, trade strategy and the future of video game growth worldwide.