In the nail, cell division takes place in the:
Matrix
The majority of the nail is produced by the germinal matrix (around 90% by volume). This matrix extends from the base of the nail to the lunula. Cells in the matrix replicate by a process where the cells flatten and are pressed forward and upward while retaining their nuclei. This retention gives the nail its white colour through the arc of the lunula (the “moon” of the nail). Where the nuclei are lost, the nail is clear, showing the pink colouring of the nail bed through it.