Thursday, June 8, 2023
No Result
View All Result
  • Home
  • Recent
  • Business
  • Economy
  • Investing
  • Markets
  • Personal Finance
  • Retirement
  • Tech
  • Startups
  • Insurance
  • Market Research
  • Crypto
  • Home
  • Recent
  • Business
  • Economy
  • Investing
  • Markets
  • Personal Finance
  • Retirement
  • Tech
  • Startups
  • Insurance
  • Market Research
  • Crypto
No Result
View All Result
Home Technology

It Will Be a Lot Easier to Add Google Stock to Your Portfolio on Monday

Updates Finance by Updates Finance
July 16, 2022
in Technology
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


You might also like

Adobe updates its social media content tool Express with Firefly

The Global Drone 4K Platinum, on sale for $80, makes a great Father’s Day gift

ZipRecruiter vs Indeed: Comparing job posting platforms

Google parent company Alphabet completed its second ever stock split at market close Friday. Investors who held shares at market close on July 1 were issued an additional 19 shares for each share owned — a onetime “share dividend.” Google will officially start trading at the split adjusted price when markets open Monday morning, July 18. Google (GOOGL) closed at $2,235.55 on Friday, so shares are expected to open at roughly one-twentieth of that price — around $110.

Google has several different types of shares and two different stock tickers. The split applied to all shares of Google: Class A shares (GOOGL), Class B shares (privately held) and Class C shares (GOOG). Class B and Class C shares have no voting rights within the company, and Class B shares aren’t publicly traded.

Since the company was first made public in 2004, there’s been only one other stock split, in 2014. The latest plan was unveiled at the same time Google released its fourth-quarter revenue report for 2021, which exceeded expectations.

Google is the latest in the wave of big companies splitting their stock. Apple, Amazon, Nvidia and Tesla all have also split their stock since 2020, some for the first time in more than two decades. The next big stock split will be by GameStop, which announced the finalized details for its stock split on July 21. Tesla shareholders will vote on another potential split in August.

Below we review what to expect as a shareholder, what a split means for the future of the company, and where each company is at in its split process.

What’s a stock split?

A stock split is when a company decides to divide its existing shares by a certain ratio to create new shares, which then lowers the individual share cost. You still own the same portion of the company, though stock splits may temporarily increase stock price volatility, or the probability of large swings in the stock price.

https://www.highcpmrevenuenetwork.com/yjx9n4xz?key=2ae113e708965368d7206a42df6559d1

Stock splits cause the total share count to increase and the stock price to go down. For example, if one share is worth $600 at the time of 5-for-1 stock split, it would turn that one share into five shares each worth $120. Shareholders retain their full relative investment before and after the split.

For investors, stock splits make shares of the company more accessible as the shares become more numerous and cheaper. For the day trader, stock splits create an environment where cheaper shares lead to higher volumes of options trading, and thus more volatility in the stock price. This creates opportunities for profit if shares can be simultaneously bought and sold in different markets for different prices, a process known as arbitrage. 

Why do companies split their stock?

Stock splits happen for a variety of reasons. Often, a company splits stock during times of growth, when it wants to make shares more affordable for retail (or noninstitutional) investors. It also allows employees more flexibility when taking advantage of employee stock-based compensation packages, which some companies, including Tesla, offer.

A company might also consider splitting its stock if it’s aiming to be included in a stock index, which, like the Dow, may have admission requirements that depend on a stock’s price. Companies are concerned about being included on these indexes because that can allow them to raise funds more easily.

What is the process for a stock split?

The actual process for implementing a stock split varies from company to company. Generally, a company will propose a stock split and explain the intent and process to shareholders. In some cases, the company needs to seek approval from shareholders before moving forward with a split. With or without this step, a company’s board of directors or other governing body will later vote on the proposal. 

If the proposal passes, the company will work with trading brokerages to decide two important dates: When existing shares will be split and the cutoff day to be a stockholder of record. Stockholders of record on a specific date are the only shareholders who will receive the new shares in the split — this is usually a few days before the official split date.

What are some significant splits in recent years? 

  • GameStop confirmed a 4-for-1 stock split on July 6. Investors who own shares by market close on July 18 will be issued new shares on July 21.
  • Google’s parent company Alphabet announced a 20-for-1 split on February 1. Investors will receive their additional shares on July 15.
  • Amazon announced a 20-for-1 stock split and $10 billion stock buyback plan on March 9. Investors who owned shares at the close of trading May 27 had their stock split on June 6. 
  • Tesla proposed a stock split on March 28, later confirming intentions for a 3-for-1 split. The shareholders will vote on the plan on Aug. 4. This would be Tesla’s second stock split in recent years, after its 5-for-1 split in August 2020.
  • Nvidia had a 4-for-1 stock split on July 20, 2021.
  • Apple had a 4-for-1 stock split in August 2020. It was the fifth time in the company’s history since going public.

What do stock splits mean for current and future investors?

In theory, investors shouldn’t gain or lose any share value due to a stock split. But in reality, this doesn’t always happen. 

Stocks that split gained an average of 25% over the following 12 months, compared to a 9% gain in a non-split, benchmark index, according to Bank of America research reported by Reuters. This additional 16% may be attributable to organic growth, as companies that split their stock generally do so based on likely future financial success.

Stock splits also open up the market for newer investors to buy shares at a lower price. Investors who might have previously been priced out of popular industries or companies may have the opportunity to invest after a stock split. 



Source link

Tags: addEasierGooglelotMondayPortfolioStock
Share30Tweet19
Updates Finance

Updates Finance

Recommended For You

Adobe updates its social media content tool Express with Firefly

by Updates Finance
June 8, 2023
0

Article Hero Image Adobe Express, a tool designed by Adobe to help users make eye-catching posts for social media, is getting an overhaul with new features — including...

Read more

The Global Drone 4K Platinum, on sale for $80, makes a great Father’s Day gift

by Updates Finance
June 8, 2023
0

Camera drones are great for capturing aerial photos and video. But they can be expensive to own — And, if you’re new to flying, you could lose your...

Read more

ZipRecruiter vs Indeed: Comparing job posting platforms

by Updates Finance
June 7, 2023
0

Looking for the best job posting platform? Compare features and pricing for ZipRecruiter and Indeed to find the right fit for your business. Finding the right candidate for...

Read more

AI was all over Apple’s WWDC. It was just running in the background

by Updates Finance
June 7, 2023
0

Jason Hiner/ZDNETAhead of WWDC, people were eager to know if Apple was finally going to make an announcement to propel the company into the AI race. To many people's...

Read more

Please don’t LOL at Coke’s newest flavor that tastes like League of Legends XP

by Updates Finance
June 7, 2023
0

In a nutshell: Coca-Cola has partnered with Riot Games on the latest soda flavor from its Creations brand. Formally known as Coca-Cola Ultimate Zero Sugar, the limited edition...

Read more
Next Post

College Conference Switching as Secession? A Case Study in "Nations by Consent"

Related News

Blue Chip Stocks In Focus: Johnson & Johnson

August 10, 2022

Happy Birthday Ratan Tata: Indian business tycoon turns 85 today; why he’s not among world’s richest persons, despite Rs 3,800 cr net worth

December 27, 2022

Don’t let your dog lead you astray, Selective Insurance tells drivers

April 21, 2023

Browse by Category

  • 1Win Casino
  • blog
  • Business
  • Cryptocurrency
  • Economy
  • Insurance
  • Investing
  • Latest updates
  • Market Research
  • Markets
  • Mostbet Casino
  • Mostbet kazinosu
  • Mostbet kumarhanesi
  • Online Dating
  • Personal Finance
  • Retirement
  • Startups
  • Technology
  • Uncategorized

Get the latest Financial news on updatesfinance.com. Business news, Economy news, Investing news, Personal Finance and more.

CATEGORIES

  • 1Win Casino
  • blog
  • Business
  • Cryptocurrency
  • Economy
  • Insurance
  • Investing
  • Latest updates
  • Market Research
  • Markets
  • Mostbet Casino
  • Mostbet kazinosu
  • Mostbet kumarhanesi
  • Online Dating
  • Personal Finance
  • Retirement
  • Startups
  • Technology
  • Uncategorized

Recent News

  • Realme launches 11 Pro Series 5G smartphones starting at ₹23,999
  • SEC’s crypto actions surged 183% in 6 months after the FTX collapse

Copyright © 2022 - Updates Finance..

No Result
View All Result
  • Home
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Updates Finance..

https://www.highcpmrevenuenetwork.com/yjx9n4xz?key=2ae113e708965368d7206a42df6559d1 https://www.videosprofitnetwork.com/watch.xml?key=23dd8a3bb9168e7b5f33ef2b66f1a432
https://www.videosprofitnetwork.com/watch.xml?key=23dd8a3bb9168e7b5f33ef2b66f1a432 https://www.highcpmrevenuenetwork.com/yjx9n4xz?key=2ae113e708965368d7206a42df6559d1
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?