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In its quarterly earnings report, Alphabet, the owner of Google, has announced a 20-for-1 stock split, designed to make buying shares more affordable.
Google rebranded to create the parent company Alphabet in 2015, and in the last two years, its stock has doubled. Now according to CNBC, it is to split its stock to make it affordable for more people to buy shares.
There are three types of Alphabet shares, called Class A, Class B, and Class C. In 2014, ahead of the creation of Alphabet, Google created Class C, which gives owners no voting rights.
Class A shareholders get one vote per share, while Class B owners are the founders and early investors, who get 10 votes per share. The new stock split applies to all classes.
Assuming that shareholders approve the move, it will happen in July 2022. Each shareholder at the end of business on July 1, 2022, will become eligible.
Then on July 15, 2022, each will get 19 additional shares for every one they own.
According to CNBC, Alphabet shares are currently selling for $2,752.88. If that figure were used to calculate the new shares, each one would then become valued at $137.64.
Apple performed a similar adjustment in 2020, on a much smaller scale. It executed a four-for-one stock split.