In Nvidia's (NVDA) broad earnings beat reported on Wednesday, the chip giant announced a 10-for-1 stock split to be implemented for current shareholders on June 7. But what exactly is a stock split and what happens to company shares when one is approved?

Wealth! Host Brad Smith gives a thorough break down of what happens to corporate stock under a split and the incentive behind one.

For more of everything Nvidia, catch Yahoo Finance's exclusive interview with CEO Jensen Huang.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Luke Carberry Mogan.