Alphabet Inc. (GOOGL), the parent company of Google, revealed plans for a 20-for-1 stock split. The split is contingent upon receiving shareholder approval at the upcoming annual meeting.
The company’s board of directors has approved the split, which will be implemented as a one-time special stock dividend. Every Alphabet shareholder will receive 19 additional shares for each share they own after market close on July 15, 2022.
This decision is primarily intended to make Alphabet’s stock more affordable and appealing to a wider investor base. The high price of Alphabet shares has historically been a barrier for some individual investors.
Key details of the stock split:
- Ratio: 20-for-1
- Approval: Subject to shareholder approval
- Record Date: July 15, 2022
- Distribution: One-time special stock dividend
The stock split is expected to have a positive impact on trading volume and liquidity. It will also potentially lead to inclusion in the Dow Jones Industrial Average, which is price-weighted.