Netflix Announces a 10-for-1 Stock Split. The Stock Rises.

Netflix shares were up nearly 3% in the moments after the company announced a stock split.  (Mario Tama/Getty Images)

Netflix is splitting its stock.

On Thursday, the company said its board of directors authorized a 10-for-1 stock split of its shares.

“The purpose of the stock split is to reset the market price of the Company’s common stock to a range that will be more accessible to employees who participate in the Company’s stock option program,” Netflix said in the release.

Netflix shares rose by 2.9% following the news.

The stock split will be effective at the market open on Nov. 17.

Last month, Netflix shares fell after the streaming company reported earnings below expectations, citing a continuing dispute with Brazilian tax authorities had negatively impacted financial results in the quarter.

Write to Tae Kim at tae.kim@barrons.com