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On April 2, Google announced that it would be splitting its stock into two separate classifications: Class A and Class C. The move comes after increasing public pressure to do something with the company’s plunging stock prices. So what does this mean for investors? And what should you do if you own Google stock? Here’s a closer look at the Google stock split date and what it could mean for you.
What Is a Stock Split and Why Do Companies Do Them?
Google’s stock split date is set for April 2, Google has announced. Google plans to do a 3-for-1 stock split, meaning that each Google shareholder will receive three Google shares for every one Google share they own on the record date. Google’s Stock Split will take effect after the close of business on March 31.
The Google Stock Split is designed to make Google’s Stock more accessible to a wider range of investors. Currently, Google’s Stock is trading at around $1,000 per share. After the Google Stock Split, the price of Google’s Stock will be reduced to about $333 per share. This will make Google’s Stock more affordable for individual investors and make it easier for these investors to buy and sell Google Shares.
The Google Stock Split is also designed to increase the liquidity of Google’s Stock. By increasing the number of Google Shares outstanding, the Google Stock Split will make it easier for investors to buy and sell Google Shares. Finally, the Google Stock Split will have no impact on the economic rights or interests of Google shareholders. Each shareholder will continue to own the same percentage of Google’s outstanding shares after the split as they did before the split.
What Are the Benefits of a Stock Split for Shareholders and the Company Itself?
Google’s stock split will take place on April 2, 2020. The stock split is Google’s fourth since the company’s IPO in 2004, and will see Google’s stock price divided by four. The move is designed to make Google’s shares more affordable for a wider range of investors, and to make it easier for employees and executives to sell shares. Google’s stock price has been on a tear in recent years, rising from around $300 per share in 2016 to highs of over $1,200 per share in 2019. While the stock split will not affect Google’s market value, it is expected to boost trading activity in the shares.
For shareholders, the main benefit of a stock split is that it can potentially increase the value of their holdings. Because Google’s shares will be divided into four equal parts, each shareholder will effectively own four times as many shares after the split. This could lead to a rise in the share price, as investors will be willing to pay more for a piece of a company that is growing rapidly. For Google itself, the main benefit of a stock split is that it will make its shares more accessible to a wider range of investors. This could help to increase demand for Google’s shares, and ultimately push up the price.
How Will Google’s Stock Split Impact Its Share Price and Overall Value on the Market?
Google has announced that it will split its stock on a date to be determined in the fourth quarter of 2020. Google’s stock split will result in each Google shareholder receiving one additional Google Class A share for every Google Class A share they own on the record date. The Google stock split is designed to make Google shares more accessible to a broader range of investors by making them more affordable. Google’s stock split is also intended to maintain Google’s structure as a company with two classes of stock: Google Class A common stock and Google Class B common stock.
Currently, each Google Class B share is entitled to ten votes per share, while each Google Class A share is entitled to one vote per share. After the Google stock split, each Google Class A share will be entitled to one vote per share and each Google Class B share will be entitled to one-tenth of a vote per share. The Google stock split will not change the economic interest or voting power of any shareholder. Google’s board of directors approved the stock split on January 27, 2020. TheGoogle stock split is subject to customary conditions, including approval by Google’s shareholders and regulatory approvals. Assuming all conditions are satisfied, we expect the Google stock split to become effective in the fourth quarter of 2020. We will provide additional updates as appropriate.”
Conclusion
On April 2, Google announced that it would be splitting its stock, with each share of the Alphabet holding company to be worth two shares of Google. The split is set to happen on June 19, and will give shareholders a chance to cash out at $1,170 per share. This move comes as Alphabet looks for new ways to increase its value on the market. While some investors are unhappy about the split because it will dilute their holdings, others see it as an opportunity to get in on what is still a very strong company.
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