Updated: Aug 28, 2022
By Ayush Nigam
Alphabet’s recent announcement of a 20:1 stock split sent the ticker up by over 9%. The
quarterly earnings report of the Tech Giant approved the plans as an effort to make the
stocks more available.
This split would cover all three classes of stock; Class A (which is
traded in the market, 1 vote per share), Class B (held by founders and early investors, 10
votes per share) and Class C (no voting rights).
In the long run, a stock split does not inherently affect how a company performs in the market, but the widespread accessibility this provides investors may be a monumental change that was required; the price of the stock would go down from $2,752 to $137.64 after the move.