Stock splits do not directly affect a company’s market capitalisation. A company’s market value is usually measured by its market capitalisation, which is calculated by multiplying the total number of outstanding shares by the unit share price. It has to be mentioned that the higher share price of company A versus company B does not mean that A is more valuable than B. Past performance is no guarantee of future returns Why is Alphabet conducting a share split?Ĭompanies carry out stock splits with the intent of making their stock prices more attractive to retail investors.īig Tech companies, including Apple ( AAPL), Tesla ( TSLA), Nvidia ( NVDA) and Amazon ( AMZN), have announced or carried out stock splits of their own recently, having seen their share prices soar. The company’s Class A shares differ from Class B shares as the latter shareholders do not trade their shares on stock exchanges.Īlphabet’s Class B shares are reported to have 10 votes a share while its Class A shares have only one vote each. ![]() Class B shares are exclusively owned by the company’s founders and select directors. Class A shares and Class C shares are listed in public markets. Shareholders approved the plan at the 2022 Annual Meeting of Stockholders on 1 June, with the Google stock split date being set for 15 July.Īlphabet has divided its stock into three classes. Investors cheered the Google stock split news as Alphabet Class A shares surged over 7.5% on the following day to see its best intraday gain of 2022. When did Google split its stock? Shareholders of Alphabet’s Class A, Class B and Class C stock received additional 19 shares for each stock they owned after the 15 July market close.Īlphabet announced on 1 February that its board of directors had approved and declared the stock split for the company’s Class A, Class B and Class C shares. ![]() US30 US Wall Street 30 (USA 30, Dow Jones)
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