Yes, Netflix's Board of Directors declared a 2-for-1 stock split on Wednesday, January 21, 2004.
Why did Netflix split the stock now?
The decision to split the stock was made by Netflix's Board of Directors to enhance the marketability of our stock. As such, this will help make our stock more accessible to a broad range of investors who share our belief in the business and take a long-term view of the company's growth opportunities.
How does a 2-for-1 stock split actually work?
A 2-for-1 split means the investor will have twice as many shares as they had before, at half the market price.
Here's an example: As of the record date (February 2, 2004), if an investor owns 100 shares of Netflix common stock and the market price is $60.00/share, that investor's total value is $6,000.00. After the split, the investor will have 200 shares of stock, at a market price of $30.00/share. The investor's total investment value in Netflix common stock remains the same at $6,000.00 until the stock price moves up or down.
What is the record date?
The Record Date is February 2, 2004. If you own shares at the close of business on the record date, you will be entitled to receive additional stock representing the split shares.
What is the payment (distribution) date?
The Mailing or Payment Date is February 11, 2004. The payment date is the date the split shares will be distributed by our transfer agent, Computershare Limited.
What is the date the stock will begin trading at the split-adjusted price?
The Ex-split Date is February 12, 2004. This is the first day Netflix stock will trade at its split-adjusted price on the Nasdaq Stock Market.
What happens if I sell my shares after the record date and before the payment date?
Shares Held In Certificate Form:
You will be required to deliver your pre-split certificate to your broker within three business days of the trade as you normally would. You will also be obligated to deliver your certificate for the additional shares resulting from the stock split after you receive the additional shares. Your trade will not settle until you deliver the certificate for the additional shares to your broker.
Shares Held By Your Broker:
Your broker will directly receive the shares resulting from the split and will settle the trade with the pre-split shares in your account and the additional post-split shares the broker will receive from the transfer agent.
My shares are deposited with a brokerage firm. How will my shares get adjusted for the stock split?
If your Netflix shares are deposited with a brokerage firm (not held in certificate form), they will be split automatically on the payment date (February 12, 2004). You won't need to do anything. Your broker, working with Netflix's transfer agent, will see that your Netflix stock holdings are properly adjusted for the stock split. Your new split adjusted balance will appear in your brokerage account on or about February 12, 2004.
Who mails the split shares?
Our transfer agent, Computershare Limited, mails written notice to registered holders indicating their split-adjusted shares. If your stock is currently held in a brokerage account, the information will be sent directly to your broker.
When will the split shares be mailed?
They will be distributed by the transfer agent on or about February 11, 2004
Where will my shares be mailed?
If you currently hold stock in your name, you will be notified at the address Computershare Limited, our stock transfer agent, has on file. To verify your address you can call Computershare Limited directly at (781) 575-2879.
If your stock is currently held in a brokerage account, the information will be sent directly to your broker and then to your brokerage account.
How can I update my address?
If your shares are held in your name, you may contact our transfer agent, Computershare Limited at 781-575-2879. If your shares are held in Street name (by your broker), you must contact your broker to update your address.
How do I contact the Transfer Agent?
Computershare Limited is Netflix's transfer agent. Computershare Limited is responsible for maintaining all records of registered stockholders (including change of address, telephone number and name), canceling or issuing stock certificates, and resolving problems related to lost, destroyed or stolen certificates. If your shares are held in Street name, you will have to contact your broker for these services.
If you have any questions about change of address, lost stock certificates, transfer of stock to another person or additional administrative services you can reach Computershare Limited:
Computershare Investor Services
Shareholder Contact Center 781-575-2879
Broker Hotline 781-575-3839 (for use by brokers only)
First Class, Registered & Certified Mail:
Computershare Investor Services
P.O. Box 43023
Providence, RI 02940-3023
Overnight Courier:
Computershare Investor Services
250 Royall Street
Canton, MA 02021
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