Everyday Power- What is a Stock Split?
[What's New]
Google parent $Alphabet-C (GOOG.US)$ announced its board approved a 20- for- 1 stock split in last week, shareholders of Alaphabet stock will receive their extra shares on Friday, July 15. $Alphabet-C (GOOG.US)$ will start trading under its new price when markets reopen on July 18.
$Alphabet-C (GOOG.US)$ is one of the most expensive stocks in Silicon Valley which pricesnearly $3,000.
It means $Alphabet-C (GOOG.US)$ will be soon enabling more people to invest in the company at cheaper price.
[Everyday Power]
[Everyday Power]
1. A stock split means that a public firm splits a share into several shares
2. When the stock price and investable barrier are too high, it is ususally splited
3. A stock split will not change the total stock value, sharehold prportion owned by a shareholder and the market cap of the company
4. Most of stocks price rise after their stocks split, but there are no guarantee
[Analyst Opinions]
Analysts predicted the move could get Alphabet's stock into the $Dow Jones Industrial Average (.DJI.US)$, which is not currently a part of according to its high price. All the funds that own the Dow will buy Alphabet shares once it enters the index, which could help increase its stock value.
More investing basics will be offered in <Everyday Power>. Keep learning to be a master investor.
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PlutoMoo102685100 : Stock splits also make options trading on the underlying stock feasible
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Moomoo Learn OP PlutoMoo102685100 : Yep, lower the amount of investing
PlutoMoo102685100 Moomoo Learn OP :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ambitious Jackal_461 : so how does this goes I'm new to this
SpyderCall ambitious Jackal_461 : 1 share of google will split into 20 shares. so if you have 1 share of the stock then you will have 20 shares of the stock after the split. but Googl's market cap will not change. so each of the 20 shares will be worth less money per share. so basically nothing will change in your investments value. You will have the same amount of money in your investment. The only thing that changes is that google will have 20x more shares at 20x less the value per share