Summary: Google's parent company Alphabet Inc (GOOGL) will be conducting a 20-to-1 stock split by the end of Q4 2022. This will change the value of 1 GOOGL stock to $110 from the current price of $2,200 - which means all shareholders will receive an additional 19 stocks.
What is Google's Stock Split?
Google will be conducting a 20-to-1 stock split by the end of Q4 2022. This means that for every 1 GOOGL stock that a shareholder owns, they will receive an additional 19 stocks. The Google Stock Split is a way for the company to make its shares more accessible to a wider range of investors.
Currently, Alphabet Inc (GOOGL) has a market capitalization of over $1 trillion, making it one of the most valuable companies in the world. However, with such a high stock price, many potential investors are unable to purchase shares. By conducting a stock split, Google will make its shares more affordable and therefore accessible to a larger number of investors.
What is the Impact of Google's Stock Split?
The impact of Google's stock split will be two-fold:
- First: The split will increase the liquidity of the stock, as there will be more shares available on the market. This will make it easier for investors to buy and sell Google shares.
- Second: The stock split will likely lead to an increase in the price of the stock, as demand for the shares is likely to increase. This is because when a company conducts a stock split, it is usually seen as a positive sign by investors, as it indicates that the company is doing well and is confident about its future prospects.
What Happens After Google's Stock Split?
Once the stock split has been conducted, shareholders will receive an additional 19 shares for every 1 share that they own. These additional shares will be distributed on a pro-rata basis, meaning that each shareholder will receive the same proportion of additional shares as they currently own.
For example, if a shareholder owns 100 shares of Google stock, they will receive 1,900 additional shares after the stock split has been conducted. These additional shares will be paid out in the form of a stock dividend.
Should I buy Google's Stock Split in 2022?
This decision is ultimately up to the individual investor. However, it is important to note that stock splits are usually seen as positive signals by the market and can often lead to an increase in the price of the shares. Therefore, Google's stock split could be a good opportunity to buy shares in the company.