Want to buy Google stock? Alphabet to carry out a 20-1 stock split

Google’s parent company Alphabet will carry out a 20: 1 stock split at the end of the market on Friday. This does not change the overall value of the company’s stock, but lowers individual stock prices and creates a simpler entry point for small investors.

The search giant split exercise follows similar recent moves by tech giant swarms such as Amazon, Apple, and Tesla, all of which have split stocks in the last few years.

Alphabet shares were trading at around $ 2,212 per share at noon on Friday, although it fell sharply from its record high of $ 3,037 per share last November.

What is a stock split? Why do you need to care? According to a CNET report, a stock split is when a company decides to split an existing stock at a specific ratio to create a new stock. This reduces individual stock costs. You still own the same part of the company, but a stock split can temporarily increase stock price volatility or increase the likelihood of large stock price fluctuations.

The stock split will increase the total number of shares and lower the stock price. For example, if one share of GOOGL is worth $ 2,200 at the time of the split, a 20: 1 stock split will convert each share to 20 shares worth $ 110 each. Shareholders must hold the full amount of their investment before and after the split.

Alphabet’s planned stock split stipulates that shareholders will receive a one-time payment of 19 shares for each share they own at the end of the market on July 15. According to CNET, these stock dividends will only be paid to “registered shareholders” (that is, shareholders who own the stock) at the end of the market on July 1. Google shares will be traded at the adjusted split price on Monday, July 18th. This completes the 20: 1 stock split originally announced on February 1.

Why is Google splitting its shares? Stock splits often indicate that a company has prospered and its stock price has risen. Time / Next Advisor.. That’s good, but it also means that stocks are no longer affordable to investors. As a result, companies can conduct stock splits to make their stock more affordable and attractive to private investors.

“When a stock starts to skyrocket and looks expensive, it was a common practice to split the stock to make it look more attractive from the price per share. Buying stock,Meghan RaileyA certified financial planner, chief financial officer and co-founder of Optas Capital, he told Next Advisor.

And although the stock split may increase Liquidity of stocks Not all companies are involved with investors, making them more accessible to investors. According to Railey, some companies prefer to keep stock prices high.

“There are two types of companies,” Railey said. “Growing companies want their stock prices to rise significantly. Tesla is pleased with the high price per share to make it more attractive. Value stock There are still opportunities to take advantage of stock splits to attract investors. “

https://www./2022/7/14/23218580/will-googles-20-1-stock-split-open-the-door-for-new-investment-from-regular-folks-retail-investors Want to buy Google stock? Alphabet to carry out a 20-1 stock split

Back to top button