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

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Shares of GameStop jumped more than 6% in extended trading Wednesday after the retailer said a 4-for-1 stock split was approved by its board.

Shareholders who own the stock at the close of the market on July 18 will get a dividend of three additional shares for each of the company's Class A common stock, the retailer said. The dividend will be distributed after trading closes on July 21, and will start trading on a split-adjusted basis the following day.

A stock split is issued when companies want to boost the number of shares and make them more affordable for investors. On Wednesday, GameStop closed at $117.43 per share.

The so-called meme stock has posted volatile one-day moves since gaining attention last year as a group of retail investors coordinated a short squeeze on the stock, spurring its price higher. Shares have since retreated from their highs, down more than 20% year to date.