Alphabet Inc., The Parent Company of Google, Has Made Its Stock More Accessible To Retail Investors.
Alphabet Inc Google's parent company is reintroducing large stock splits to the market, so potential buyers won't have to pay a four-digit figure to own a share. Google has announced a 20-to-1 stock split. That means that following the split, there will be 20 times as many GOOG shares accessible as there are now. Lowering the price does something else for Google parent Alphabet Inc. It allows America's third-largest firm to be included in its most prestigious stock index.
Alphabet revealed its fourth-quarter earnings yesterday, causing the company's shares to rise more than 10% in pre-market trade. However, another cause for the price increase might be Google's huge announcement about splitting its stock.
A stock split occurs when a company decides to divide its shares by a specific factor. This results in more shares than existed prior to the split. For example, if you buy one share of GOOG today, you will have 20 shares once the company splits 20-to-1.
The Wall Street Journal reports that stockholders of record on July 1, 2022 will get an additional 19 shares for every share they possess on Friday, July 15. On Monday, July 18, the stock will begin trading at its split-adjusted price.