GameStop jumps over 6% in extended trading after announcing 4-for-1 stock split

A screen displays the logo and trading information for GameStop on the floor of the New York Stock Exchange (NYSE) March 29, 2022.

After the retailer said a 4-for-1 stock split was approved by its board, its shares jumped more than six percent.

The retailer said that shareholders who own the stock at the close of the market on July 18 will get a dividend of three additional shares. After trading closes on July 21, the dividend will be distributed and the stock will begin trading on a split-adjusted basis the next day.

A stock split is when a company wants to increase the number of shares in order to make them more affordable. The company's closing price was $117.43 per share.

Since last year, when a group of retail investors coordinated a short squeeze on the stock, the meme stock has posted volatile one-day moves. The shares have retreated from their highs.