1 00:00:40,680 --> 00:00:44,659 Suze: June 23rd, 2024. Good morning, Miss Travis. 2 00:00:44,759 --> 00:00:46,509 KT: Today is the day Suze. 3 00:00:47,110 --> 00:00:50,799 KT: It's the day. It's the day that you have been 4 00:00:50,810 --> 00:00:55,389 KT: waiting for and everyone that took the quizzy on the 5 00:00:55,400 --> 00:00:59,930 KT: Aliant website has been waiting for and guess what, Suze? 6 00:00:59,939 --> 00:01:00,889 Suze: What, KT? 7 00:01:01,080 --> 00:01:02,450 KT: You have a winner. 8 00:01:02,459 --> 00:01:04,010 Suze: But don't announce it yet. 9 00:01:04,019 --> 00:01:05,330 KT: No, you're going to announce that. 10 00:01:05,339 --> 00:01:09,519 Suze: Not yet because, welcome everybody to the Women and Money 11 00:01:09,529 --> 00:01:12,610 Suze: podcast as well as everybody smart enough to listen. 12 00:01:12,940 --> 00:01:17,860 Suze: This is Suze School today and we are, I promise 13 00:01:17,870 --> 00:01:22,370 Suze: you going to talk about stock splits and we're gonna 14 00:01:22,379 --> 00:01:27,269 Suze: talk about NVIDIA and I'm gonna give all of you 15 00:01:27,279 --> 00:01:27,819 Suze: a quizzy 16 00:01:29,430 --> 00:01:33,559 Suze: that you're gonna have to answer for yourself. And on Thursday, 17 00:01:33,569 --> 00:01:40,029 Suze: July 4th, I'm gonna ask KT that quizzy to see if, oh, 18 00:01:40,040 --> 00:01:43,870 Suze: she's already making a face. She's rubbing, she does this 19 00:01:43,879 --> 00:01:47,900 Suze: thing everybody where she puts her little head down, her 20 00:01:47,910 --> 00:01:52,250 Suze: right arm goes up, her hand goes in her hair 21 00:01:52,500 --> 00:01:55,290 Suze: and she's just staring down like, really? 22 00:01:55,940 --> 00:01:59,250 Suze: So your quizzy on Thursday July 4th is going to be the 23 00:01:59,260 --> 00:02:02,220 Suze: quizzy that I'm going to give everybody today and I'm 24 00:02:02,239 --> 00:02:06,889 Suze: gonna listen to today's podcast and you. That's right. You should. 25 00:02:07,739 --> 00:02:11,008 KT: Ok, let's tell ev erybody about the winner. I'm so excited. 26 00:02:11,020 --> 00:02:11,309 KT: All right. 27 00:02:12,649 --> 00:02:17,690 Suze: So you now know what's happening today, but right now 28 00:02:18,190 --> 00:02:21,519 Suze: what's important really is the moment that many of you 29 00:02:21,529 --> 00:02:22,919 Suze: have been waiting for. 30 00:02:23,419 --> 00:02:25,728 Suze: So the winner 31 00:02:26,520 --> 00:02:33,300 Suze: for the $5000 sweepstakes that somebody was going to win 32 00:02:33,389 --> 00:02:36,710 Suze: simply because they entered an email and nothing else. I 33 00:02:36,720 --> 00:02:39,179 Suze: hope all of you were smart enough to do that. 34 00:02:39,508 --> 00:02:44,979 Suze: The winner of that sweepstakes... drum roll, Robert 35 00:02:45,919 --> 00:02:47,960 Suze: is announce it, KT! (Sound ofdrum roll in background). 36 00:02:48,990 --> 00:02:54,538 KT: Lisa Hagen. Lisa is from New Hampshire everyone, Lisa, we 37 00:02:54,550 --> 00:02:58,660 KT: are so excited that you became the proud winner of 38 00:02:58,669 --> 00:03:04,320 KT: $5000 from Alliant and we want to know what you're 39 00:03:04,330 --> 00:03:05,139 KT: gonna do with it. 40 00:03:05,270 --> 00:03:10,258 Suze: Let us know Lisa. But hopefully this news makes you 41 00:03:10,270 --> 00:03:14,460 Suze: one happy woman. All right. 42 00:03:15,270 --> 00:03:17,000 Suze: Wouldn't you want to win 5000? 43 00:03:17,399 --> 00:03:22,250 Suze: Every day, every day, every, every day, Suze. 44 00:03:22,258 --> 00:03:24,720 Suze: All right. Now, while I go on to do Suze School... 45 00:03:24,929 --> 00:03:28,869 KT: Wait, I have a question. So Suze, let's say Lisa gets 46 00:03:28,880 --> 00:03:33,330 KT: this $5000 and she decides to put it back into 47 00:03:33,339 --> 00:03:37,050 KT: an Alliant one year. CD how much interest will she 48 00:03:37,059 --> 00:03:37,869 KT: earn on that? 49 00:03:39,326 --> 00:03:43,406 Suze: 5.15% KT. That's really a great interest rate because I 50 00:03:43,416 --> 00:03:45,626 Suze: don't know if a lot of you are noticing but 51 00:03:45,636 --> 00:03:51,005 Suze: interest rates are starting to go down little by little 52 00:03:51,016 --> 00:03:55,266 Suze: even the long term treasury. So one year, 12 months 53 00:03:55,276 --> 00:03:58,755 Suze: to 17 months, by the way, everybody, because remember at Alliant, 54 00:03:59,035 --> 00:04:01,055 Suze: you can choose your maturity 55 00:04:01,332 --> 00:04:06,412 Suze: all the way up to 18 months, 5.15% on $5000 56 00:04:06,421 --> 00:04:08,511 Suze: for that period of time. If you want that money 57 00:04:08,522 --> 00:04:12,501 Suze: to stay safe and sound is a great way to go. 58 00:04:12,511 --> 00:04:14,511 Suze: All right. what are you gonna go do now, KT? 59 00:04:14,522 --> 00:04:16,351 Suze: Because you are not staying in here. 60 00:04:17,712 --> 00:04:19,532 KT: I want to learn about the split. 61 00:04:19,562 --> 00:04:23,701 Suze: I know but this actually isn't a complicated one but 62 00:04:23,712 --> 00:04:25,731 Suze: because you know, since I do it from the top 63 00:04:25,742 --> 00:04:26,712 Suze: of my head, 64 00:04:27,390 --> 00:04:30,039 Suze: there's numbers and things that can get confusing. 65 00:04:30,049 --> 00:04:32,570 KT: But it's good for people that are already in the 66 00:04:32,579 --> 00:04:34,549 KT: market and those that want to come in for the 67 00:04:34,559 --> 00:04:35,600 KT: first time, right? 68 00:04:35,630 --> 00:04:38,988 Suze: No, this is about stock splits and NVIDIA wrong. Ok. 69 00:04:39,910 --> 00:04:41,880 Suze: There you go. Alright. Go. Have a great day. 70 00:04:41,890 --> 00:04:45,940 KT: I'm gonna go swim. I love you. Love you all listening. Lisa. 71 00:04:45,950 --> 00:04:49,140 KT: Congrats again. Bye bye bye bye. 72 00:04:50,700 --> 00:04:53,779 Suze: All right. So now that we know who won the 73 00:04:53,790 --> 00:04:57,019 Suze: $5000 and I'm so sorry that it wasn't you if 74 00:04:57,029 --> 00:05:02,190 Suze: it wasn't you. But anyway, now it is time for 75 00:05:02,200 --> 00:05:07,000 Suze: Suze School. So get out your notebooks and let's learn 76 00:05:07,010 --> 00:05:10,558 Suze: about something that you have wanted to learn about. But 77 00:05:10,570 --> 00:05:13,760 Suze: more than you wanting to learn about it. I wanted 78 00:05:13,769 --> 00:05:17,238 Suze: to make sure that you understood it. And this Suze 79 00:05:17,250 --> 00:05:19,200 Suze: School came from 80 00:05:19,519 --> 00:05:22,219 Suze: an email question that we got. Maybe it was two 81 00:05:22,230 --> 00:05:26,349 Suze: weeks ago. I'm not exactly sure about how somebody wrote 82 00:05:26,359 --> 00:05:28,730 Suze: in and they said, oh, they were so excited. They 83 00:05:28,738 --> 00:05:33,058 Suze: had NVIDIA Stock. It just split and now they have 84 00:05:33,070 --> 00:05:36,558 Suze: an extra $37,000 and they wanted to know what to 85 00:05:36,570 --> 00:05:39,260 Suze: do with it. And that's when I said stop KT 86 00:05:39,500 --> 00:05:42,339 Suze: it is obvious that we need to do a Suze 87 00:05:42,350 --> 00:05:47,229 Suze: school on this topic. And that is exactly what we 88 00:05:47,238 --> 00:05:48,700 Suze: are going to do today. 89 00:05:49,010 --> 00:05:51,160 Suze: So not only am I going to talk to you 90 00:05:51,170 --> 00:05:56,010 Suze: about stock splits, but I've decided I needed to talk 91 00:05:56,019 --> 00:06:00,670 Suze: to you about NVIDIA Stock itself because while it's true 92 00:06:01,279 --> 00:06:04,079 Suze: that every one of you now without a shadow of 93 00:06:04,089 --> 00:06:08,950 Suze: a doubt knows that name NVIDIA, NVIDIA, NVIDIA, 94 00:06:10,089 --> 00:06:14,159 Suze: do you even know what they do? Do you even 95 00:06:14,170 --> 00:06:19,679 Suze: know the category of stocks that they happen to belong to? 96 00:06:20,640 --> 00:06:25,709 Suze: Do? You know why they are so really invaluable? They are, 97 00:06:25,720 --> 00:06:29,589 Suze: you can't even value them and why everybody wants them. 98 00:06:29,649 --> 00:06:31,579 Suze: What do they offer 99 00:06:32,260 --> 00:06:37,000 Suze: that at this particular time? Everybody feels that nobody else 100 00:06:37,010 --> 00:06:43,440 Suze: offers and should you be investing in it or not? 101 00:06:43,980 --> 00:06:48,480 Suze: So this might get to be a little bit complicated 102 00:06:48,488 --> 00:06:53,200 Suze: but absolutely not complicated for those of you 103 00:06:53,540 --> 00:06:57,339 Suze: who are smart enough to listen to the women and 104 00:06:57,350 --> 00:07:02,049 Suze: money podcast, which in my opinion is every single one 105 00:07:02,059 --> 00:07:02,559 Suze: of you. 106 00:07:03,630 --> 00:07:08,850 Suze: Let's start with, what is a stock split? A stock 107 00:07:08,859 --> 00:07:14,250 Suze: split is very simple. It's where a company that has 108 00:07:14,260 --> 00:07:18,829 Suze: a stock, you might own a few shares of that stock. 109 00:07:18,839 --> 00:07:21,160 Suze: We'll take NVIDIA as an example 110 00:07:21,920 --> 00:07:26,989 Suze: and that stock has gone up so much in value 111 00:07:27,529 --> 00:07:31,910 Suze: that the company feels like, you know, people won't continue 112 00:07:31,920 --> 00:07:36,369 Suze: to buy it because it's too expensive. In June just 113 00:07:36,380 --> 00:07:43,630 Suze: a little bit ago when NVIDIA was at $1200 a share, 114 00:07:44,850 --> 00:07:50,149 Suze: the company obviously felt that it was too expensive for 115 00:07:50,160 --> 00:07:53,359 Suze: the majority of you to buy, even though you could 116 00:07:53,369 --> 00:07:56,869 Suze: have bought slices just a fraction of it. 117 00:07:58,170 --> 00:08:02,510 Suze: Most people like to at least own one share 118 00:08:03,489 --> 00:08:11,059 Suze: and one share of NVIDIA back then was $1200 per share. 119 00:08:11,070 --> 00:08:14,709 Suze: And many of you didn't have the money or don't 120 00:08:14,720 --> 00:08:19,309 Suze: have the money to buy one full share. 121 00:08:20,369 --> 00:08:25,510 Suze: So what happens then is that a company like NVIDIA 122 00:08:25,519 --> 00:08:30,140 Suze: decides to split the price of the stock 123 00:08:31,369 --> 00:08:36,468 Suze: and adjust how many shares of stock you own accordingly? 124 00:08:37,309 --> 00:08:41,969 Suze: So in NVIDIA's case, they had what was known as 125 00:08:41,979 --> 00:08:46,489 Suze: a 10 to 1 stock split, 126 00:08:47,179 --> 00:08:53,640 Suze: which simply meant that the $1200 share price 127 00:08:54,409 --> 00:08:56,789 Suze: would be divided by 10 128 00:08:57,530 --> 00:09:04,439 Suze: or $120. So they reduced the price of the stock 129 00:09:04,450 --> 00:09:06,869 Suze: by 10 times, 130 00:09:08,020 --> 00:09:12,579 Suze: but they would increase the number of shares you owned 131 00:09:12,590 --> 00:09:14,439 Suze: by that as well. 132 00:09:15,150 --> 00:09:21,309 Suze: So if you happen to own, let's just say 100 133 00:09:21,320 --> 00:09:28,929 Suze: shares of NVIDIA, you now would own 1000 shares of NVIDIA. 134 00:09:29,489 --> 00:09:33,039 Suze: If you owned one share of NVIDIA, 135 00:09:33,820 --> 00:09:38,319 Suze: you now would own 10 shares of NVIDIA. 136 00:09:39,250 --> 00:09:43,039 Suze: So let's just say you owned a fraction of NVIDIA, 137 00:09:43,049 --> 00:09:47,070 Suze: you never even had enough money to buy one share. 138 00:09:47,590 --> 00:09:51,450 Suze: All you had was let's just say 0.8 shares of 139 00:09:51,460 --> 00:09:52,289 Suze: NVIDIA 140 00:09:53,000 --> 00:09:55,340 Suze: after NVIDIA split, 141 00:09:56,169 --> 00:10:00,940 Suze: you would own eight shares of NVIDIA. 142 00:10:01,690 --> 00:10:06,469 Suze: Now, the woman who obviously thought that she was up 143 00:10:06,479 --> 00:10:13,799 Suze: $37,000 is that she wasn't looking at the actual price 144 00:10:13,809 --> 00:10:18,510 Suze: adjustment of the stock. She was just looking at now 145 00:10:18,520 --> 00:10:22,900 Suze: how many shares of that stock most likely she owned? 146 00:10:23,830 --> 00:10:29,320 Suze: So if she saw a split where she owned 100 147 00:10:29,330 --> 00:10:34,130 Suze: shares of NVIDIA, and now she sees that she's owning 148 00:10:34,469 --> 00:10:39,700 Suze: 1000 shares of NVIDIA and she still thinks that it's 149 00:10:39,710 --> 00:10:44,020 Suze: at $1200 per share. You would see why she thought 150 00:10:44,030 --> 00:10:47,309 Suze: that she hit the jackpot. But the truth of the 151 00:10:47,320 --> 00:10:52,618 Suze: matter is all you need to know about any stock 152 00:10:52,630 --> 00:10:53,280 Suze: split 153 00:10:53,940 --> 00:10:58,059 Suze: is that you really don't make any money. You don't 154 00:10:58,070 --> 00:11:03,559 Suze: lose any money, you end up with more shares, 155 00:11:04,330 --> 00:11:09,080 Suze: but by a reduced value. Now, there are all different 156 00:11:09,090 --> 00:11:16,349 Suze: kinds of stock splits. In this case, NVIDIA split 10 157 00:11:16,539 --> 00:11:20,340 Suze: to 1. So again, every share that you have, you 158 00:11:20,349 --> 00:11:24,869 Suze: are going to end up with 10 shares, but NVIDIA 159 00:11:24,960 --> 00:11:29,739 Suze: is going to reduce its price 10 times. So again, 160 00:11:29,750 --> 00:11:33,380 Suze: in this case, $1200 down to 120. 161 00:11:33,989 --> 00:11:38,098 Suze: But the truth of the matter is, it's not always 162 00:11:38,109 --> 00:11:42,869 Suze: a 10 to 1 stock split. Sometimes it's a 2 163 00:11:42,880 --> 00:11:46,650 Suze: to 1, a 3 to 1, a 4 to 1 164 00:11:46,659 --> 00:11:52,359 Suze: or whatever the company deems will help them and their 165 00:11:52,369 --> 00:11:56,770 Suze: stock price and people purchasing it over the long run. 166 00:11:57,159 --> 00:12:00,419 Suze: In fact, you may not even know this, but this 167 00:12:00,429 --> 00:12:06,840 Suze: was not the first stock split for NVIDIA everybody. You know, 168 00:12:06,849 --> 00:12:10,799 Suze: NVIDIA has been around for a long time and this 169 00:12:10,809 --> 00:12:16,770 Suze: is actually the sixth time that they split their stock. 170 00:12:17,140 --> 00:12:20,890 Suze: The first time was in June, I believe of 2000. 171 00:12:20,900 --> 00:12:23,030 Suze: It was a two for one stock split. 172 00:12:23,309 --> 00:12:28,770 Suze: Then September 12th, 2001, a two for one stock split. 173 00:12:29,020 --> 00:12:35,179 Suze: September 2007, a three for two stock split. Write that 174 00:12:35,190 --> 00:12:39,579 Suze: down because I want you to know how would you 175 00:12:39,590 --> 00:12:45,659 Suze: even decipher what that means in July of 2021. Not 176 00:12:45,669 --> 00:12:48,919 Suze: that long ago, they had a four for one stock 177 00:12:48,929 --> 00:12:52,569 Suze: split and June 10th of this year, 178 00:12:53,059 --> 00:12:56,549 Suze: they had a 10 for 1 stock split. If you 179 00:12:56,559 --> 00:12:59,440 Suze: really want to get sick to your stomach. 180 00:13:00,650 --> 00:13:04,630 Suze: Let me just tell you what that would mean for 181 00:13:04,640 --> 00:13:09,109 Suze: every share of NVIDIA that you owned back then, you 182 00:13:09,119 --> 00:13:16,390 Suze: would have 480 shares today as of this 2024 stock split, 183 00:13:17,020 --> 00:13:19,359 Suze: I just want you to think about that. So if 184 00:13:19,369 --> 00:13:23,000 Suze: you owned 100 shares back then, guess what? You would 185 00:13:23,010 --> 00:13:27,739 Suze: have 48,000 shares of NVIDIA today. If you owned 1000 186 00:13:27,750 --> 00:13:33,880 Suze: shares back then you would have 480,000 shares of NVIDIA today. 187 00:13:34,369 --> 00:13:38,390 Suze: And if you had 10,000 shares back then you would 188 00:13:38,400 --> 00:13:45,119 Suze: have 4,800,000 shares of NVIDIA today, 189 00:13:45,739 --> 00:13:50,090 Suze: which is when you have a good stock and you 190 00:13:50,099 --> 00:13:55,960 Suze: understand what the stock does and what the future may bring. 191 00:13:56,489 --> 00:14:00,109 Suze: That's when you hold on to a stock because a 192 00:14:00,119 --> 00:14:03,169 Suze: lot of you, I'm sure way back then as NVIDIA 193 00:14:03,179 --> 00:14:06,599 Suze: was going up or they were stock splitting or whatever, 194 00:14:06,609 --> 00:14:10,960 Suze: you didn't have a clue 24 years ago, what was 195 00:14:10,969 --> 00:14:14,479 Suze: going to happen with artificial intelligence and things like that? 196 00:14:15,010 --> 00:14:17,630 Suze: But if you just had held it, can you even 197 00:14:17,640 --> 00:14:19,030 Suze: begin to imagine 198 00:14:19,809 --> 00:14:22,750 Suze: how rich you would be truth of the matter is 199 00:14:23,119 --> 00:14:26,549 Suze: back in the year 2000? I didn't have a clue. 200 00:14:26,559 --> 00:14:30,659 Suze: I never had heard of NVIDIA. Just say him. So 201 00:14:30,669 --> 00:14:34,719 Suze: I wouldn't feel too bad about it. Let's go back 202 00:14:34,729 --> 00:14:37,719 Suze: for a second to the three for two stock split. 203 00:14:37,729 --> 00:14:39,539 Suze: Here is your quizzy right now. 204 00:14:40,359 --> 00:14:41,979 Suze: If you owned 205 00:14:42,770 --> 00:14:46,070 Suze: just one share of NVIDIA, 206 00:14:47,510 --> 00:14:53,340 Suze: what would it mean? A three for two stock split 207 00:14:53,349 --> 00:14:58,909 Suze: in September of 2007? I need you to write this 208 00:14:58,919 --> 00:14:59,590 Suze: down 209 00:15:00,799 --> 00:15:07,820 Suze: the price of NVIDIA stock was right around $50.91. 210 00:15:10,039 --> 00:15:16,159 Suze: And they announced a three for two stock split. 211 00:15:17,580 --> 00:15:19,679 Suze: I am not going to tell you the answer and 212 00:15:19,690 --> 00:15:22,979 Suze: how to do that right now. I want you to 213 00:15:22,989 --> 00:15:27,179 Suze: be able to answer the question if you had 100 214 00:15:27,190 --> 00:15:29,119 Suze: shares of NVIDIA 215 00:15:29,900 --> 00:15:37,679 Suze: at $50.91 before the September 11th, 2007, 3 for two 216 00:15:37,690 --> 00:15:38,799 Suze: stock split. 217 00:15:39,549 --> 00:15:45,590 Suze: How many shares would you have had after the stock split? 218 00:15:46,690 --> 00:15:52,729 Suze: And what would the price of NVIDIA be? That is 219 00:15:52,739 --> 00:15:57,869 Suze: your quizzy. And on Thursday, July 4th, that will be 220 00:15:57,880 --> 00:16:01,520 Suze: KT's quizzy. Now, you know, she's not gonna have the 221 00:16:01,530 --> 00:16:04,219 Suze: answer to that question. She's gonna just look at me 222 00:16:04,229 --> 00:16:06,549 Suze: like I've lost it and then she's gonna start to 223 00:16:06,559 --> 00:16:09,380 Suze: giggle in that sweet little giggle of hers 224 00:16:09,719 --> 00:16:12,640 Suze: and then she's gonna say something. I'm gonna say no, 225 00:16:12,650 --> 00:16:18,419 Suze: no unless maybe she surprises me. But anyway, and that's 226 00:16:18,429 --> 00:16:22,780 Suze: when I will tell you exactly the answer to that question. 227 00:16:23,479 --> 00:16:28,500 Suze: So again, a 3 for 2 stock split. 228 00:16:29,559 --> 00:16:32,989 Suze: What does that mean? But I'll just give you a 229 00:16:33,000 --> 00:16:37,950 Suze: little hint. All right, a three for two stock split 230 00:16:37,960 --> 00:16:43,270 Suze: means that for every two shares that you own, 231 00:16:44,030 --> 00:16:48,570 Suze: you are going to get an additional one share. 232 00:16:49,549 --> 00:16:54,859 Suze: Just that simple. That is the information that you need 233 00:16:54,869 --> 00:17:01,000 Suze: to work with. So this is one type of stock split. 234 00:17:01,070 --> 00:17:05,180 Suze: There are really two different types of stock splits, but 235 00:17:05,189 --> 00:17:10,290 Suze: for now, you just need to understand that the usual 236 00:17:10,300 --> 00:17:17,290 Suze: stock split is like two for one, three for one, four for one or 10 for one. 237 00:17:19,298 --> 00:17:23,638 Suze: All right. Now, the next question has to be why 238 00:17:23,648 --> 00:17:30,038 Suze: does a company really split its stock? And what is 239 00:17:30,048 --> 00:17:33,519 Suze: the advantage to you as an investor? 240 00:17:34,239 --> 00:17:39,829 Suze: So obviously, as an investor, it's easier for you to buy, 241 00:17:40,030 --> 00:17:43,909 Suze: because a stock split like this, you know, reduces the 242 00:17:43,920 --> 00:17:45,219 Suze: price of the share. 243 00:17:45,660 --> 00:17:48,290 Suze: So it makes it more affordable for you. If you're 244 00:17:48,300 --> 00:17:52,599 Suze: somebody who doesn't like to buy slices of a stock, 245 00:17:52,699 --> 00:17:56,909 Suze: maybe this enables you to buy one full share of 246 00:17:56,920 --> 00:18:02,459 Suze: a stock. In NVIDIA's case, it went from 1200 to 120. 247 00:18:02,619 --> 00:18:07,099 Suze: So maybe you had $120 that you could buy one 248 00:18:07,109 --> 00:18:09,959 Suze: share or maybe even four shares. 249 00:18:10,290 --> 00:18:17,630 Suze: So it increases your affordability to buy more shares if 250 00:18:17,640 --> 00:18:22,069 Suze: especially you want to buy full shares, what does it 251 00:18:22,079 --> 00:18:27,149 Suze: do for the company? It actually improves believe it or 252 00:18:27,160 --> 00:18:28,750 Suze: not their liquidity. 253 00:18:29,050 --> 00:18:34,369 Suze: Because when they do this, they're actually increasing the number 254 00:18:34,380 --> 00:18:39,909 Suze: of shares, they're called outstanding shares, right that the company has. 255 00:18:39,920 --> 00:18:43,869 Suze: So now they have far more shares than they had 256 00:18:43,880 --> 00:18:45,069 Suze: on the market, 257 00:18:45,680 --> 00:18:50,859 Suze: which does what it improves the liquidity and it boosts 258 00:18:50,869 --> 00:18:54,420 Suze: the trading volume and makes it easier to buy and 259 00:18:54,430 --> 00:18:59,659 Suze: sell stock, which gives them more activity in their stock. 260 00:18:59,670 --> 00:19:04,849 Suze: And probably they hope an increase in their stock per 261 00:19:04,859 --> 00:19:05,438 Suze: share 262 00:19:06,119 --> 00:19:12,369 Suze: also. It just seems that when a stock goes down 263 00:19:12,579 --> 00:19:17,800 Suze: like that with, it goes from 1200 to 120 people 264 00:19:17,810 --> 00:19:24,609 Suze: don't really understand what happened. Some people look at this as, oh, 265 00:19:24,819 --> 00:19:27,680 Suze: at 100 and $20 a share. Now there's more room 266 00:19:27,689 --> 00:19:30,389 Suze: for appreciation because at $1200 267 00:19:30,520 --> 00:19:34,839 Suze: a share, how high can it really go a lot 268 00:19:34,849 --> 00:19:38,390 Suze: higher by the way? But people don't think that way. 269 00:19:38,469 --> 00:19:41,989 Suze: You normally think when you see something at 1200 or 270 00:19:42,000 --> 00:19:47,160 Suze: 1800 or whatever, or even at 600,000, like some of 271 00:19:47,170 --> 00:19:51,910 Suze: Warren Buffett's Berkshire Hathaway or whatever it's trading at now, 272 00:19:52,040 --> 00:19:54,129 Suze: you just look at it and you think I can't 273 00:19:54,140 --> 00:19:56,750 Suze: do that. I'm out of there. I can't afford it. 274 00:19:57,390 --> 00:19:59,659 Suze: So a lot of times when you just look at 275 00:19:59,670 --> 00:20:04,810 Suze: that and you see $120 stock, you kind of think that, oh, 276 00:20:04,819 --> 00:20:09,160 Suze: it's undervalued. It has more room to grow. So what 277 00:20:09,170 --> 00:20:14,260 Suze: do you do? You buy it? Also remember in investing 278 00:20:14,270 --> 00:20:19,290 Suze: in the stock market, there's not only a financial aspect 279 00:20:19,300 --> 00:20:19,909 Suze: to it 280 00:20:20,430 --> 00:20:25,319 Suze: but there's like a psychological aspect, an emotional one. A 281 00:20:25,329 --> 00:20:28,160 Suze: lot of times when you see a stock having run 282 00:20:28,199 --> 00:20:31,489 Suze: to $1200 like NVIDIA, 283 00:20:32,290 --> 00:20:36,630 Suze: you just psychologically think, oh, you can't afford that 284 00:20:37,469 --> 00:20:41,680 Suze: when it splits and now it's at $120 a share, 285 00:20:42,439 --> 00:20:47,079 Suze: you think? Oh, I can afford that. It's affordable. So 286 00:20:47,089 --> 00:20:52,929 Suze: what does that do. It attracts more investors, more investors 287 00:20:52,939 --> 00:20:58,500 Suze: buying NVIDIA can potentially drive up the price of that 288 00:20:58,510 --> 00:21:03,409 Suze: stock over time. Which recently if you look at the 289 00:21:03,420 --> 00:21:04,660 Suze: price of NVIDIA, 290 00:21:05,079 --> 00:21:11,650 Suze: it immediately went from 120 to 125... 130 in there. 291 00:21:11,660 --> 00:21:17,250 Suze: Did you see that? So obviously people thought psychologically, oh, 292 00:21:17,420 --> 00:21:21,459 Suze: I can now get in on this stock that everybody's 293 00:21:21,469 --> 00:21:27,979 Suze: talking about at a lot lower price. Also, people who 294 00:21:27,989 --> 00:21:33,109 Suze: like to own full shares, they don't believe in these slices. 295 00:21:33,119 --> 00:21:34,729 Suze: That's not how they invest. 296 00:21:35,619 --> 00:21:42,599 Suze: It allows them to increase the diversification of their portfolio. 297 00:21:43,060 --> 00:21:47,680 Suze: So when a stock goes down, like NVIDIA does simply 298 00:21:47,689 --> 00:21:52,369 Suze: because of the split price, then a lot of people 299 00:21:52,380 --> 00:21:57,669 Suze: buy that stock because they want diversification in their portfolio. 300 00:21:57,900 --> 00:22:00,979 Suze: So now maybe they can buy 100 shares or 10 301 00:22:00,989 --> 00:22:02,119 Suze: shares of it. 302 00:22:02,589 --> 00:22:07,459 Suze: Diversify their portfolio were really, they didn't feel that they 303 00:22:07,469 --> 00:22:12,770 Suze: could do that before the split. Those are just some 304 00:22:12,780 --> 00:22:14,530 Suze: of the reasons 305 00:22:15,189 --> 00:22:20,609 Suze: that a split stock price can really help the price 306 00:22:20,660 --> 00:22:23,729 Suze: of the stock doesn't always work that way, 307 00:22:24,420 --> 00:22:29,020 Suze: but it can. But you need to know that a 308 00:22:29,030 --> 00:22:34,290 Suze: stock split does not change the company's market capitalization or 309 00:22:34,300 --> 00:22:38,989 Suze: the overall value of the company and it does not 310 00:22:39,000 --> 00:22:44,660 Suze: increase the value of what you own when it splits, 311 00:22:45,089 --> 00:22:51,909 Suze: it's equal across the board. Now, I hope that explained 312 00:22:51,920 --> 00:22:52,948 Suze: it to you. 313 00:22:53,500 --> 00:22:56,239 Suze: Here's the next question, everybody. 314 00:22:57,420 --> 00:23:01,040 Suze: Can you just tell me what NVIDIA does. Can you 315 00:23:01,050 --> 00:23:05,739 Suze: tell me what group of stocks it belongs to? Is 316 00:23:05,750 --> 00:23:09,430 Suze: it a software company, a semiconductor company? You know, there 317 00:23:09,439 --> 00:23:14,079 Suze: are different categories of stocks, stocks that are staple stocks 318 00:23:14,089 --> 00:23:18,400 Suze: that are discretionary stocks that are health stocks, energy stocks, 319 00:23:18,410 --> 00:23:24,560 Suze: all different kinds of categories that stocks fall into. 320 00:23:25,630 --> 00:23:33,129 Suze: So do you even know the category that NVIDIA falls into? 321 00:23:33,140 --> 00:23:35,290 Suze: Do you or do you not? 322 00:23:37,319 --> 00:23:40,920 Suze: Because if you end up just buying a stock, really? 323 00:23:40,930 --> 00:23:43,989 Suze: Because somebody else said to buy it or whatever? Because 324 00:23:44,000 --> 00:23:47,139 Suze: it's always in the news and you don't even know 325 00:23:47,150 --> 00:23:51,140 Suze: the category of that stock or what they do, 326 00:23:52,079 --> 00:23:56,500 Suze: then you're really just an investor in my opinion, that's 327 00:23:56,510 --> 00:24:00,159 Suze: following what other people are telling you to do. Even 328 00:24:00,170 --> 00:24:05,699 Suze: if your financial advisor suggested that you buy NVIDIA 329 00:24:07,400 --> 00:24:11,260 Suze: and that advisor were me? I would tell you exactly 330 00:24:11,270 --> 00:24:15,459 Suze: what that stock does, why I like it and why 331 00:24:15,469 --> 00:24:19,629 Suze: you should buy it if I was seeing you one 332 00:24:19,640 --> 00:24:23,339 Suze: on one. So let's go back to NVIDIA right now. 333 00:24:23,750 --> 00:24:27,729 Suze: And the answer to that question is NVIDIA falls into 334 00:24:27,739 --> 00:24:32,290 Suze: a category known as a semiconductor. 335 00:24:33,300 --> 00:24:35,729 Suze: And I'll tell you why I want you to know 336 00:24:35,739 --> 00:24:38,239 Suze: that in a second. All right, 337 00:24:38,949 --> 00:24:44,050 Suze: why do they fall in that category? Because their core 338 00:24:44,060 --> 00:24:45,609 Suze: business really 339 00:24:46,170 --> 00:24:56,599 Suze: revolves around designing and manufacturing semiconductor chips just that simple. 340 00:24:56,880 --> 00:25:01,020 Suze: And it is those chips that go into A I 341 00:25:01,030 --> 00:25:06,689 Suze: automation gaming, all of it. It is those chips that 342 00:25:06,699 --> 00:25:14,150 Suze: make NVIDIA a semiconductor company. Now the two things that 343 00:25:14,160 --> 00:25:15,069 Suze: NVIDIA 344 00:25:15,530 --> 00:25:22,430 Suze: is truly known for is something called a graphic processing 345 00:25:22,439 --> 00:25:23,130 Suze: unit 346 00:25:23,910 --> 00:25:28,770 Suze: referred to as GPUs... write this down 347 00:25:29,880 --> 00:25:31,780 Suze: as well as 348 00:25:32,599 --> 00:25:38,099 Suze: what's called a system on chips, an SOC product, they're 349 00:25:38,109 --> 00:25:42,689 Suze: known for other things truthfully. But it's right there, 350 00:25:43,410 --> 00:25:49,750 Suze: those two things especially that makes NVIDIA so special, 351 00:25:50,790 --> 00:25:53,719 Suze: right? Because a significant portion 352 00:25:54,349 --> 00:26:04,170 Suze: of NVIDIA's value, everybody lies in its semiconductor intellectual property rights. 353 00:26:05,229 --> 00:26:10,880 Suze: It lies in in its ability to develop these cutting 354 00:26:10,930 --> 00:26:16,770 Suze: edge semiconductor chips. So that is why it is grouped 355 00:26:17,069 --> 00:26:24,129 Suze: in the semiconductor industry. Just that simple. Now, what's interesting is, 356 00:26:24,640 --> 00:26:29,438 Suze: did you hear me say it's intellectual property, the chips, 357 00:26:29,449 --> 00:26:34,290 Suze: the GPUs that NVIDIA is producing 358 00:26:35,420 --> 00:26:39,689 Suze: their intellectual property of what's in those chips, how they 359 00:26:39,699 --> 00:26:43,859 Suze: do those chips is invaluable? Remember 360 00:26:44,839 --> 00:26:50,400 Suze: the smaller the chips become and the more powerful the 361 00:26:50,410 --> 00:26:57,859 Suze: chips are, the more information can be held in all 362 00:26:57,869 --> 00:27:02,659 Suze: of these computers and the things that are being developed now, 363 00:27:03,020 --> 00:27:10,859 Suze: these semiconductor chips that NVIDIA makes obviously is invaluable to 364 00:27:10,869 --> 00:27:15,560 Suze: many different types of companies but its real value. Now, 365 00:27:15,579 --> 00:27:21,300 Suze: at least in my opinion seems to be in artificial 366 00:27:21,310 --> 00:27:30,239 Suze: intelligence because artificial intelligence is truthfully everybody in its beginning stage, 367 00:27:30,770 --> 00:27:36,750 Suze: it has so much further to grow and develop. It's 368 00:27:36,760 --> 00:27:42,909 Suze: not even funny which makes NVIDIA and companies like NVIDIA 369 00:27:43,760 --> 00:27:45,550 Suze: so important. 370 00:27:46,189 --> 00:27:51,569 Suze: But right now NVIDIA is leading the pack tenfold , 371 00:27:51,750 --> 00:27:58,660 Suze: but that doesn't mean that there are not additional semiconductor 372 00:27:58,670 --> 00:28:04,810 Suze: stocks that are worth you looking at number one or 373 00:28:05,380 --> 00:28:10,390 Suze: is there an ETF that you could buy in the 374 00:28:10,400 --> 00:28:12,930 Suze: semiconductor arena 375 00:28:13,739 --> 00:28:19,890 Suze: to participate in NVIDIA and the other companies? Because you 376 00:28:19,900 --> 00:28:23,300 Suze: never know what can happen in life and with a stock? 377 00:28:23,410 --> 00:28:27,010 Suze: So do you think it is wise for you to 378 00:28:27,020 --> 00:28:30,399 Suze: put all of your money that you wanna put in 379 00:28:30,410 --> 00:28:35,520 Suze: this area in one stock NVIDIA or do you think 380 00:28:35,530 --> 00:28:39,829 Suze: that maybe for you a better decision would be to 381 00:28:39,839 --> 00:28:41,439 Suze: give you diversification 382 00:28:41,699 --> 00:28:46,180 Suze: to put your money in an exchange traded fund where 383 00:28:46,189 --> 00:28:50,959 Suze: NVIDIA maybe is their number one holding? You have to 384 00:28:50,969 --> 00:28:52,959 Suze: decide that for yourself. 385 00:28:53,300 --> 00:28:58,219 Suze: Now, it's no secret. I own NVIDIA. I've owned NVIDIA 386 00:28:58,229 --> 00:29:03,520 Suze: for a long time, but I own other semiconductor stocks 387 00:29:03,530 --> 00:29:08,239 Suze: as well. I have diversification in that arena where I've 388 00:29:08,250 --> 00:29:14,140 Suze: also made great money on those other semiconductor stocks. 389 00:29:14,790 --> 00:29:18,310 Suze: But if I was a relatively new investor or I 390 00:29:18,319 --> 00:29:21,479 Suze: didn't have a large portfolio, so I didn't have a 391 00:29:21,489 --> 00:29:25,530 Suze: lot of diversification among a specific area, 392 00:29:26,410 --> 00:29:30,869 Suze: I would actually do an ETF before I just put 393 00:29:30,880 --> 00:29:35,040 Suze: it all into one stock, even if that stock is 394 00:29:35,050 --> 00:29:38,829 Suze: projected to continue to go up and up and up. 395 00:29:39,729 --> 00:29:46,459 Suze: My favorite ETF in the semiconductor area is the Vaneck 396 00:29:46,949 --> 00:29:55,050 Suze: semiconductor ETF right now, it's trading for about $266 a share. 397 00:29:55,060 --> 00:30:00,489 Suze: Its symbol is S like in Susie, M like in money, 398 00:30:00,699 --> 00:30:02,530 Suze: H like in honey 399 00:30:03,260 --> 00:30:06,099 Suze: because I was thinking about KT that second. But SMH 400 00:30:06,109 --> 00:30:08,829 Suze: is its symbol, 401 00:30:10,160 --> 00:30:12,349 Suze: an ETF such as SMH 402 00:30:14,260 --> 00:30:18,130 Suze: comes with high risk. It just does, it can go 403 00:30:18,140 --> 00:30:21,260 Suze: up a lot, but also it can go down a 404 00:30:21,270 --> 00:30:27,119 Suze: lot and nothing including NVIDIA or any of these stocks 405 00:30:27,130 --> 00:30:30,520 Suze: will go straight up. They just won't 406 00:30:30,920 --> 00:30:36,030 Suze: because there always comes a time when somebody says, you 407 00:30:36,040 --> 00:30:39,260 Suze: know what, I've made so much money on this stock. 408 00:30:39,270 --> 00:30:42,650 Suze: I am now selling and then another person thinks that 409 00:30:42,660 --> 00:30:44,540 Suze: and before you know, it, it goes down, 410 00:30:45,589 --> 00:30:48,939 Suze: you are not to put all of your money at 411 00:30:48,949 --> 00:30:54,829 Suze: this point in time in any of these stocks or 412 00:30:54,839 --> 00:31:00,530 Suze: ETFs you are to dollar cost average into it. Just 413 00:31:00,540 --> 00:31:05,020 Suze: that simple. Just a few days ago, I put some 414 00:31:05,030 --> 00:31:09,109 Suze: of Colo's money into certain stocks, but just a very 415 00:31:09,119 --> 00:31:11,290 Suze: small portion of it, 416 00:31:11,869 --> 00:31:16,670 Suze: of what I want invested for him. So little by little. 417 00:31:16,680 --> 00:31:20,040 Suze: So don't go put everything you have right now into 418 00:31:20,050 --> 00:31:23,729 Suze: just NVIDIA or if you decide to go the ETF 419 00:31:23,739 --> 00:31:30,890 Suze: route into SMH. But bottom line, this Suze School was 420 00:31:30,900 --> 00:31:35,099 Suze: you now should understand stock splits how they work. And 421 00:31:35,109 --> 00:31:37,410 Suze: now at least, you know a little bit 422 00:31:37,910 --> 00:31:43,959 Suze: about the stock NVIDIA that everybody is talking about. All right. 423 00:31:43,969 --> 00:31:46,949 Suze: So until Thursday, there's only one thing that I want 424 00:31:46,959 --> 00:31:48,839 Suze: you to remember when it comes to your money and 425 00:31:48,849 --> 00:31:54,069 Suze: it is this people first, then money, then things, now 426 00:31:54,079 --> 00:31:57,239 Suze: you stay safe and if you do that, you will 427 00:31:57,250 --> 00:32:00,729 Suze: also stay unstoppable.