Google Stock Splits: A History
First Split: April 3, 2014
On April 3, 2014, Alphabet, Google's parent company, underwent its first stock split. Shareholders of GOOGL received 1998 shares for every share they owned. This resulted in a 20-to-1 split, meaning that the price of each share was reduced by 20 times.
Second Split: July 15, 2022
On July 15, 2022, Alphabet announced its second stock split. This time, shareholders received 20 shares for every share they owned, resulting in a 20-to-1 split. The price of each share was reduced by 20 times.
Total Stock Splits
In total, GOOG has undergone three stock splits since its initial public offering (IPO) in 2004. The following table provides a summary of the stock split history:
| Date | Split Ratio |
|---|---|
| April 3, 2014 | 20-to-1 |
| July 15, 2022 | 20-to-1 |
Benefits of Stock Splits
Stock splits can provide several benefits to shareholders, including:
*- Increased liquidity: Stock splits make shares more affordable, increasing their liquidity and making them more accessible to a wider range of investors.
- Potential for price appreciation: Stock splits can sometimes lead to an increase in the price of the stock, as they can signal that the company is doing well and has confidence in its future prospects.
- Psychological impact: Stock splits can have a positive psychological impact on investors, as they can make them feel like they own a larger piece of the company.
Conclusion
Google's stock splits have been a significant event in the company's history. They have made shares more affordable, increased liquidity, and potentially led to an increase in the stock price. Stock splits can be a valuable tool for companies to manage their capital structure and reward shareholders.
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