0:40

June 23rd, 2024.

0:43

Good morning, Miss Travis.

0:44

Today is the day Suze. It's

0:47

the day. It's the day that you

0:50

have been waiting for and

0:52

everyone that took the quizzy on

0:55

the Aliant website has been waiting

0:57

for and guess what, Suze?

0:59

What, KT?

1:01

You have a winner.

1:02

But don't announce it yet.

1:04

No, you're going to announce that.

1:05

Not yet because,

1:07

welcome everybody to the Women and Money podcast

1:10

as well as everybody smart enough to listen.

1:12

This is Suze

1:15

School today and we are, I promise

1:17

you going to talk about

1:20

stock splits and we're

1:22

gonna talk about NVIDIA

1:24

and I'm gonna give all of

1:26

you a quizzy that

1:29

you're gonna have to answer for yourself.

1:32

And on Thursday, July 4th,

1:35

I'm gonna ask KT that quizzy

1:38

to see if, oh, she's already

1:41

making a face. She's rubbing,

1:43

she does this thing everybody where

1:45

she puts her little head down, her

1:47

right arm goes up, her

1:50

hand goes in her hair and

1:52

she's just staring down like, really?

1:55

So your quizzy on Thursday

1:58

July 4th is going to be the quizzy that I'm going

2:00

to give everybody today and I'm gonna

2:02

listen to today's podcast and you. That's

2:05

right. You should.

2:07

Ok, let's tell ev erybody about the winner.

2:10

I'm so excited. All right.

2:12

So you now know what's happening

2:14

today, but right

2:16

now what's important

2:19

really is the moment that many of

2:21

you have been waiting for. So

2:24

the winner for

2:27

the $5000

2:29

sweepstakes that somebody

2:32

was going to win simply because

2:34

they entered an email and nothing

2:36

else. I hope all of you were smart enough

2:38

to do that. The winner

2:40

of that sweepstakes...

2:43

drum roll, Robert is

2:46

announce it, KT! (Sound ofdrum roll in background).

2:48

Lisa Hagen. Lisa

2:51

is from New Hampshire everyone,

2:53

Lisa, we are so excited

2:56

that you became the proud winner of

2:58

$5000

3:00

from Alliant and

3:03

we want to know what you're gonna do with it.

3:05

Let us know Lisa. But

3:07

hopefully this news makes

3:09

you one happy

3:12

woman. All right.

3:15

Wouldn't you want to win 5000? Every

3:17

day, every day, every,

3:20

every day, Suze. All right. Now,

3:22

while I go on to do Suze School...

3:24

Wait, I have a question. So Suze,

3:27

let's say Lisa gets this $5000

3:30

and she decides to put it back

3:32

into an Alliant one year.

3:34

CD how much interest will

3:36

she earn on that?

3:39

5.15% KT. That's really

3:41

a great interest rate because I don't know if a lot

3:44

of you are noticing but interest

3:46

rates are starting to go

3:48

down little by little

3:51

even the long term treasury.

3:53

So one year, 12 months

3:55

to 17 months, by the way, everybody,

3:57

because remember at Alliant, you can

3:59

choose your maturity all the

4:01

way up to 18 months, 5.15%

4:05

on $5000 for that period of

4:07

time. If you want that money to stay safe

4:09

and sound is a great

4:11

way to go. All right. what are you gonna go do now, KT?

4:14

Because you are not staying in here.

4:17

I want to learn about the split.

4:19

I know but this actually isn't

4:21

a complicated one but because

4:24

you know, since I do it from the top of my

4:26

head, there's numbers

4:28

and things that can get confusing.

4:30

But it's good for people that are already

4:32

in the market and those that want to come in for

4:34

the first time, right?

4:35

No, this is about stock splits and NVIDIA

4:38

wrong. Ok. There you

4:40

go. Alright. Go. Have a great day.

4:41

I'm gonna go swim. I love you. Love

4:44

you all listening. Lisa. Congrats

4:46

again. Bye bye bye

4:48

bye.

4:50

All right. So now

4:52

that we know who won the $5000

4:54

and I'm so sorry that it wasn't you if

4:57

it wasn't you. But anyway,

4:59

now it is time for

5:02

Suze School. So get out your notebooks

5:05

and let's learn about

5:07

something that you have wanted to learn about.

5:10

But more than you wanting to learn about

5:12

it. I wanted to make sure that you understood

5:15

it. And this Suze School

5:17

came from an email

5:20

question that we got. Maybe it was two weeks

5:22

ago. I'm not exactly sure about

5:24

how somebody wrote in and they said, oh, they

5:27

were so excited. They had NVIDIA

5:29

Stock. It just split

5:32

and now they have an extra $37,000

5:35

and they wanted to know what to do with it. And

5:37

that's when I said stop KT it

5:39

is obvious that we need to do

5:41

a Suze school on this topic.

5:44

And that is exactly what

5:46

we are going to do today. So

5:49

not only am I going to talk to you about

5:51

stock splits, but

5:53

I've decided I needed to talk

5:56

to you about NVIDIA Stock

5:58

itself because while it's true

6:01

that every one of you now without

6:03

a shadow of a doubt knows

6:05

that name NVIDIA, NVIDIA,

6:08

NVIDIA, do

6:10

you even know what they do?

6:13

Do you even know the category

6:15

of stocks that they happen

6:17

to belong to? Do?

6:20

You know why they are

6:23

so really invaluable? They

6:25

are, you can't even value them and why

6:27

everybody wants them.

6:29

What do they offer that

6:32

at this particular time? Everybody

6:35

feels that nobody else offers

6:38

and should you be investing

6:41

in it or not?

6:43

So this might get to be

6:46

a little bit complicated but

6:48

absolutely not

6:50

complicated for those of

6:52

you who are smart enough

6:54

to listen to the women and

6:57

money podcast, which in

6:59

my opinion is every single

7:01

one of you. Let's

7:03

start with, what

7:05

is a stock split?

7:08

A stock split is very simple.

7:11

It's where a company that

7:13

has a stock, you

7:15

might own a few shares

7:17

of that stock. We'll take NVIDIA

7:20

as an example and

7:22

that stock has gone

7:24

up so much in value

7:27

that the company feels like, you know,

7:30

people won't continue to buy

7:32

it because it's too expensive.

7:35

In June just a little bit ago

7:38

when NVIDIA was

7:40

at $1200

7:42

a share, the

7:45

company obviously felt

7:47

that it was too expensive

7:49

for the majority of you to

7:51

buy, even though you could have bought

7:53

slices just a fraction

7:56

of it. Most

7:58

people like to at least own

8:00

one share and

8:04

one share of NVIDIA

8:06

back then was $1200

8:10

per share. And many of you

8:12

didn't have the money or don't have

8:14

the money to buy one

8:17

full share. So

8:20

what happens then is

8:23

that a company like NVIDIA

8:25

decides to split

8:27

the price of the stock

8:31

and adjust how many shares

8:33

of stock you own accordingly?

8:37

So in NVIDIA's case,

8:40

they had what was known as a 10

8:43

to 1 stock

8:46

split, which simply

8:48

meant that the

8:50

$1200 share

8:52

price would

8:54

be divided by 10 or

8:58

$120. So

9:01

they reduced the price of

9:03

the stock by 10

9:05

times, but

9:08

they would increase the number

9:10

of shares you owned by

9:13

that as well. So

9:15

if you happen to own,

9:18

let's just say 100

9:21

shares of NVIDIA,

9:23

you now would own 1000

9:27

shares of NVIDIA. If

9:29

you owned one share

9:31

of NVIDIA, you

9:34

now would own 10

9:36

shares of NVIDIA. So

9:39

let's just say you owned a fraction

9:42

of NVIDIA, you never even had

9:44

enough money to buy one share.

9:47

All you had was let's just say 0.8

9:50

shares of NVIDIA after

9:53

NVIDIA split, you

9:56

would own eight shares

9:59

of NVIDIA. Now,

10:02

the woman who obviously thought

10:05

that she was up $37,000

10:09

is that she wasn't looking

10:11

at the actual price adjustment

10:14

of the stock. She

10:16

was just looking at now how

10:18

many shares of that stock

10:20

most likely she owned? So

10:24

if she saw a split

10:27

where she owned 100 shares

10:29

of NVIDIA, and now

10:32

she sees that she's owning 1000

10:35

shares of NVIDIA and

10:37

she still thinks that it's at

10:40

$1200 per share.

10:42

You would see why she thought that she hit the

10:44

jackpot. But the truth

10:47

of the matter is all

10:49

you need to know about

10:51

any stock split is

10:54

that you really don't make any

10:56

money. You don't lose

10:58

any money, you

11:00

end up with more shares,

11:04

but by a reduced value.

11:06

Now, there are all different

11:09

kinds of stock splits.

11:12

In this case, NVIDIA

11:14

split 10 to 1.

11:17

So again, every share that you have,

11:20

you are going to end up with 10

11:22

shares, but NVIDIA

11:24

is going to reduce its

11:27

price 10 times. So

11:29

again, in this case, $1200

11:31

down to 120. But

11:34

the truth of the matter is,

11:36

it's not always a 10

11:38

to 1 stock split. Sometimes

11:42

it's a 2 to 1, a 3

11:44

to 1, a 4 to 1

11:46

or whatever the company

11:48

deems will help them

11:51

and their stock price and people

11:53

purchasing it over the long

11:56

run. In fact, you may

11:58

not even know this, but this was

12:00

not the first stock

12:02

split for NVIDIA

12:05

everybody. You know, NVIDIA

12:07

has been around for a long time

12:10

and this is actually the sixth

12:12

time that they

12:14

split their stock. The

12:17

first time was in June,

12:19

I believe of 2000. It was a two

12:21

for one stock split. Then September

12:24

12th, 2001,

12:26

a two for one stock split.

12:29

September 2007,

12:31

a three for two

12:33

stock split. Write that down

12:36

because I want you to know

12:38

how would you even decipher

12:41

what that means in

12:43

July of 2021. Not

12:45

that long ago, they had a four

12:47

for one stock split and

12:50

June 10th of this year,

12:53

they had a 10 for 1 stock

12:55

split. If you really want to get

12:57

sick to your stomach. Let

13:00

me just tell you what that

13:03

would mean for every

13:05

share of NVIDIA that you owned

13:07

back then, you would have 480

13:11

shares today as

13:13

of this 2024 stock

13:15

split, I just want you to

13:18

think about that. So if you owned 100

13:20

shares back then, guess

13:22

what? You would have 48,000 shares

13:24

of NVIDIA today. If you owned

13:26

1000 shares back then

13:29

you would have 480,000

13:31

shares of NVIDIA today.

13:34

And if you had 10,000 shares

13:36

back then you would have

13:38

4,800,000

13:41

shares of NVIDIA

13:43

today, which

13:46

is when

13:48

you have a good stock and you understand

13:51

what the stock does

13:53

and what the future may bring.

13:56

That's when you hold on to

13:58

a stock because a lot of you,

14:00

I'm sure way back then as NVIDIA

14:03

was going up or they were stock splitting

14:05

or whatever, you didn't have

14:07

a clue 24 years ago,

14:10

what was going to happen with artificial intelligence

14:13

and things like that? But if

14:15

you just had held it, can you even

14:17

begin to imagine how

14:20

rich you would be truth of the matter is

14:23

back in the year 2000?

14:25

I didn't have a clue. I never had heard

14:27

of NVIDIA. Just say

14:29

him. So I wouldn't feel

14:31

too bad about it. Let's

14:34

go back for a second to the three

14:36

for two stock split. Here is your

14:38

quizzy right now. If

14:40

you owned just

14:43

one share of NVIDIA,

14:47

what would it mean?

14:49

A three for two

14:51

stock split in September

14:54

of 2007?

14:57

I need you to write this down

15:00

the price of NVIDIA

15:02

stock was right around

15:04

$50.91.

15:10

And they announced

15:12

a three for two

15:14

stock split. I

15:17

am not going to tell you the answer and how

15:19

to do that right now. I

15:22

want you to be able to answer

15:24

the question if you had 100

15:27

shares of NVIDIA at

15:29

$50.91

15:33

before the September 11th,

15:35

2007, 3 for two stock

15:38

split. How many

15:40

shares would you have had after

15:43

the stock split? And

15:47

what would the price of

15:49

NVIDIA be? That

15:52

is your quizzy. And on

15:54

Thursday, July 4th,

15:56

that will be KT's quizzy.

15:59

Now, you know, she's not gonna have

16:01

the answer to that question. She's gonna just

16:03

look at me like I've lost it and

16:05

then she's gonna start to giggle in that sweet

16:07

little giggle of hers and

16:10

then she's gonna say something. I'm gonna say

16:12

no, no unless maybe

16:14

she surprises me. But anyway,

16:17

and that's when I will tell

16:19

you exactly the answer

16:21

to that question. So

16:23

again, a 3 for 2

16:27

stock split. What

16:30

does that mean? But I'll just

16:32

give you a little hint.

16:34

All right, a three

16:36

for two stock split means

16:39

that for every two shares

16:42

that you own, you

16:44

are going to get an additional

16:46

one share. Just

16:50

that simple. That is

16:52

the information that you

16:54

need to work with. So

16:57

this is one type

16:59

of stock split. There are really

17:01

two different types of stock

17:04

splits, but for now,

17:06

you just need to understand

17:09

that the usual stock split

17:11

is like two for one, three for one, four for one or

17:16

10 for one. All

17:19

right. Now, the next question

17:21

has to be why does

17:25

a company really split

17:27

its stock? And

17:29

what is the advantage to you as

17:31

an investor? So

17:34

obviously, as an investor,

17:37

it's easier for you to buy,

17:40

because a stock split like this,

17:42

you know, reduces the price

17:44

of the share. So it makes

17:46

it more affordable for you. If you're somebody

17:48

who doesn't like to buy slices

17:51

of a stock, maybe this

17:53

enables you to buy one

17:55

full share of a stock.

17:58

In NVIDIA's case, it went from

18:00

1200 to 120.

18:02

So maybe you had $120

18:06

that you could buy one share or maybe

18:08

even four shares. So

18:10

it increases your

18:13

affordability to buy

18:15

more shares if especially

18:18

you want to buy full shares,

18:21

what does it do for the

18:23

company? It actually

18:25

improves believe it or not their liquidity.

18:29

Because when they do this,

18:31

they're actually increasing the number

18:34

of shares, they're called outstanding

18:36

shares, right that the

18:38

company has. So now they have

18:40

far more shares than

18:42

they had on the market,

18:45

which does what it

18:48

improves the liquidity

18:50

and it boosts the trading volume

18:52

and makes it easier to buy and

18:54

sell stock, which

18:56

gives them more activity

18:58

in their stock. And probably

19:01

they hope an increase

19:03

in their stock per share

19:06

also. It just

19:08

seems that when a stock

19:10

goes down like

19:12

that with, it goes from 1200

19:15

to 120 people

19:17

don't really understand what happened.

19:20

Some people look

19:22

at this as, oh, at

19:25

100 and $20 a share. Now there's

19:27

more room for appreciation because

19:29

at $1200 a share, how

19:31

high can it really go

19:34

a lot higher by the way? But

19:36

people don't think that way. You

19:38

normally think when you see something at 1200

19:41

or 1800 or whatever,

19:43

or even at 600,000,

19:46

like some of Warren Buffett's Berkshire

19:49

Hathaway or whatever it's trading at now,

19:52

you just look at it and you think I can't

19:54

do that. I'm out of there. I can't afford

19:56

it. So a lot of times

19:58

when you just look at that and you see

20:01

$120 stock, you

20:03

kind of think that, oh, it's undervalued.

20:06

It has more room to grow. So

20:08

what do you do? You buy

20:11

it? Also remember

20:13

in investing in the stock market,

20:16

there's not only a financial

20:18

aspect to it but there's

20:20

like a psychological aspect,

20:23

an emotional one. A lot

20:25

of times when you see a stock having run

20:28

to $1200

20:30

like NVIDIA, you

20:32

just psychologically think, oh, you

20:34

can't afford that when

20:38

it splits and now it's at $120

20:40

a share, you think?

20:43

Oh, I can afford that.

20:45

It's affordable. So what

20:47

does that do. It attracts more

20:49

investors, more

20:52

investors buying NVIDIA

20:55

can potentially drive up

20:57

the price of that stock over

21:00

time. Which recently

21:02

if you look at the price of NVIDIA,

21:05

it immediately went from 120

21:08

to 125... 130 in

21:11

there. Did you see that? So

21:13

obviously people thought

21:15

psychologically, oh, I can

21:17

now get in on this

21:20

stock that everybody's talking about

21:22

at a lot lower price.

21:25

Also, people

21:27

who like to own full

21:30

shares, they don't believe in these slices.

21:33

That's not how they invest. It

21:35

allows them to increase the diversification

21:39

of their portfolio.

21:43

So when a stock goes

21:45

down, like NVIDIA does simply

21:47

because of the split price,

21:50

then a lot of people buy

21:53

that stock because they want diversification

21:56

in their portfolio. So now

21:58

maybe they can buy 100 shares

22:00

or 10 shares of it. Diversify

22:03

their portfolio were really,

22:05

they didn't feel that they could

22:07

do that before

22:10

the split. Those are just

22:12

some of the reasons

22:15

that a split stock price

22:17

can really help the

22:19

price of the stock doesn't

22:22

always work that way, but

22:24

it can. But you

22:26

need to know that

22:29

a stock split does not change

22:31

the company's market capitalization

22:33

or the overall value of

22:36

the company and it does

22:38

not increase the

22:40

value of what you own

22:42

when it splits, it's

22:45

equal across the

22:47

board. Now, I hope

22:50

that explained it to

22:52

you. Here's the next

22:54

question, everybody. Can

22:57

you just tell me what NVIDIA does.

23:00

Can you tell me what group

23:03

of stocks it belongs to?

23:05

Is it a software company, a semiconductor

23:08

company? You know, there are different categories

23:10

of stocks, stocks that

23:12

are staple stocks that are discretionary

23:15

stocks that are health stocks, energy

23:17

stocks, all different kinds of

23:19

categories that

23:22

stocks fall into.

23:25

So do you even

23:27

know the category

23:30

that NVIDIA falls

23:32

into? Do you or do you

23:34

not? Because

23:37

if you end up just buying a stock,

23:40

really? Because somebody else said to buy

23:42

it or whatever? Because it's always

23:44

in the news and you don't even

23:46

know the category of that stock

23:49

or what they do,

23:52

then you're really just an

23:54

investor in my opinion,

23:56

that's following what other people are

23:58

telling you to do. Even if

24:00

your financial advisor suggested

24:03

that you buy NVIDIA

24:07

and that advisor were me? I

24:09

would tell you exactly what that stock

24:12

does, why I like it and

24:14

why you should buy

24:16

it if I was seeing

24:19

you one on one. So let's go

24:21

back to NVIDIA right now.

24:23

And the answer to that question is NVIDIA

24:26

falls into a category

24:28

known as a semiconductor.

24:33

And I'll tell you why I want you

24:35

to know that in a second.

24:37

All right, why

24:39

do they fall in that category?

24:42

Because their core business

24:44

really revolves

24:47

around designing

24:49

and manufacturing semiconductor

24:53

chips just that simple.

24:56

And it is those chips that go

24:59

into A I automation

25:02

gaming, all of it. It is

25:04

those chips that

25:06

make NVIDIA a semiconductor

25:10

company. Now the

25:12

two things that NVIDIA

25:15

is truly known

25:17

for is something

25:19

called a graphic processing

25:22

unit referred

25:24

to as GPUs... write

25:27

this down as

25:30

well as what's

25:33

called a system on chips,

25:35

an SOC product,

25:37

they're known for other things truthfully.

25:40

But it's right there, those

25:44

two things especially

25:46

that makes NVIDIA so

25:48

special, right?

25:51

Because a significant portion

25:54

of NVIDIA's value,

25:56

everybody lies in its

25:59

semiconductor intellectual

26:02

property rights. It

26:05

lies in in its ability

26:08

to develop these cutting

26:10

edge semiconductor chips.

26:13

So that is why it is

26:16

grouped in the semiconductor

26:19

industry. Just that simple.

26:21

Now, what's interesting is,

26:24

did you hear me say it's intellectual

26:27

property, the chips, the

26:29

GPUs that

26:32

NVIDIA is producing

26:35

their intellectual property

26:37

of what's in those chips, how they

26:39

do those chips is invaluable?

26:43

Remember the

26:45

smaller the chips become

26:48

and the more powerful the

26:50

chips are, the

26:52

more information

26:55

can be held in

26:57

all of these computers

26:59

and the things that are being developed

27:01

now, these semiconductor

27:05

chips that NVIDIA makes

27:08

obviously is invaluable

27:10

to many different types of companies

27:13

but its real value. Now,

27:15

at least in my opinion seems

27:18

to be in artificial

27:21

intelligence because

27:23

artificial intelligence

27:26

is truthfully everybody

27:28

in its beginning stage,

27:30

it has so much further

27:33

to grow and develop.

27:36

It's not even funny which

27:38

makes NVIDIA and companies

27:41

like NVIDIA so

27:44

important. But

27:46

right now NVIDIA is leading

27:48

the pack tenfold ,

27:51

but that doesn't mean that

27:53

there are not additional

27:57

semiconductor stocks

28:00

that are worth you looking

28:02

at number one or

28:05

is there an ETF

28:08

that you could buy in the semiconductor

28:12

arena to participate

28:15

in NVIDIA

28:17

and the other companies? Because

28:19

you never know what can happen in life

28:22

and with a stock? So do

28:24

you think it is wise for

28:26

you to put all of your money

28:29

that you wanna put in this area

28:31

in one stock NVIDIA or

28:34

do you think that maybe

28:37

for you a better decision

28:39

would be to give you diversification

28:41

to put your money in an

28:43

exchange traded fund where

28:46

NVIDIA maybe is their number

28:48

one holding? You

28:50

have to decide that for yourself.

28:53

Now, it's no secret.

28:55

I own NVIDIA. I've owned

28:57

NVIDIA for a long time,

29:00

but I own other semiconductor

29:02

stocks as well. I have

29:05

diversification in that

29:07

arena where I've also made great

29:09

money on those other semiconductor

29:13

stocks. But

29:15

if I was a relatively new investor

29:18

or I didn't have a large portfolio,

29:20

so I didn't have a lot of diversification

29:23

among a specific area,

29:26

I would actually do an ETF

29:29

before I just put it all into

29:32

one stock, even

29:34

if that stock is projected to continue

29:36

to go up and up and up.

29:39

My favorite ETF

29:42

in the semiconductor area

29:45

is the Vaneck semiconductor

29:48

ETF right now,

29:50

it's trading for about $266

29:54

a share. Its symbol is

29:56

S like in Susie, M

29:59

like in money, H

30:01

like in honey because

30:03

I was thinking about KT that second. But

30:05

SMH is its

30:07

symbol, an

30:10

ETF such as SMH comes

30:14

with high risk. It just does,

30:17

it can go up a lot, but also

30:19

it can go down a lot

30:22

and nothing including

30:24

NVIDIA or any of these stocks

30:27

will go straight up.

30:29

They just won't because

30:31

there always comes a time when

30:33

somebody says,

30:35

you know what, I've made so much

30:38

money on this stock. I am now selling

30:40

and then another person thinks that and before

30:43

you know, it, it goes down, you

30:45

are not to put all of

30:47

your money at this point in time

30:50

in any of these stocks

30:54

or ETFs you are to

30:56

dollar cost average

30:58

into it. Just that simple.

31:02

Just a few days ago, I put

31:04

some of Colo's money into certain

31:07

stocks, but just a very

31:09

small portion of it,

31:11

of what I want invested for

31:13

him. So little by

31:16

little. So don't go put everything

31:18

you have right now into just NVIDIA

31:21

or if you decide to go the ETF

31:23

route into SMH.

31:27

But bottom line, this

31:29

Suze School was you now should

31:31

understand stock splits

31:33

how they work. And now at least, you

31:36

know a little bit about

31:38

the stock NVIDIA that

31:40

everybody is talking about.

31:43

All right. So until Thursday, there's

31:45

only one thing that I want you to remember when

31:47

it comes to your money and it is this

31:49

people first, then money,

31:52

then things, now you

31:54

stay safe and if you do that, you

31:57

will also stay unstoppable.