The split, which has already been approved by the Board of Directors, will impact the company’s class A, class B and class C stock, and is subject to shareholder approval. Should it come to fruition, it would be only the second time that Google has conducted a stock split. The company executed a two-for-one split in 2014 that created the class C stock with no voting power.
Google restructured under the Alphabet corporate umbrella in 2015 and its share value has continued to swell. At the close of business yesterday, a single Alphabet share was worth $2,752.88. At such a high price, it becomes prohibitive for some investors to purchase entire shares rather than smaller fractions. A 20-for-1 split would bring the cost down to just $137.64 per share, making it much more attractive to casual investors or those just starting to build a portfolio. Share value in Alphabet is up more than eight percent on the news, trading at $2,975 as of this writing. Image credit: Kai Wenzel, Ahmer Kalam
