If a stovk does a 10 to 1 split does it get back to before split prices?

The stock price does not return to its pre-split price level after a 10-for-1 stock split. However, the total value of an investor's investment remains the same. Here's a detailed analysis:

1. Impact of Stock Splits: A stock split like Nvidia's 10-for-1 split does not change the intrinsic value or market capitalization of the company. It simply increases the number of shares outstanding while proportionally lowering the price per share.
2. Affordability and Demand: The primary purpose of a stock split is to make the stock more affordable to a wider range of investors, which can potentially boost demand and increase the stock price.
3. Investor's Position: An investor holding one share before the split would hold 10 shares at a lower price after the split, but the total value of their investment remains the same.
4. Market Reaction: While some investors may view the stock as more affordable and decide to buy, driving up the stock price, there is no guarantee that the stock price will increase after a split. The stock price is determined by various factors, including company performance, market conditions, and investor sentiment.
5. Calculating Stock Price: The price of a stock is typically calculated by dividing the stock price by earnings per share, and the price-to-earnings ratio is widely used to estimate intrinsic value. A stock split does not impact these calculations.
6. Market Capitalization: The market capitalization, or the total value of the company, is not affected by a stock split because it is calculated by multiplying the stock price by the number of shares outstanding. In a 10-for-1 split, the stock price decreases by 90%, but the number of shares increases by 10 times, maintaining the same market capitalization.

In conclusion, while a stock split does not change the intrinsic value or market capitalization of a company, it can potentially increase the stock price by making it more affordable and boosting demand. However, the stock price after a split is not guaranteed to return to its pre-split levels.