Stock splits do not directly affect a company’s market capitalisation. A company’s market value is usually measured by its market capitalisation, which is calculated by multiplying the total number of outstanding shares by the unit share price.

It should be mentioned that the higher share price of company A versus company B does not mean that A is more valuable than B. Why has Alphabet conducted a share split?Ĭompanies carry out stock splits with the intent of making their stock prices more attractive to retail investors.īig Tech companies, including Apple ( AAPL), Tesla ( TSLA), Nvidia ( NVDA) and Amazon ( AMZN), have announced or carried out stock splits of their own in 2022, having seen their share prices soar in the aftermath. Investors cheered the Google stock split news as Alphabet Class A shares surged over 7.5% on the following day. Not listed in public markets.Ĭlass C: GOOG shares listed in public markets and traded on stock exchanges, with no voting rights. The tech giant has stock divided into three classes:Ĭlass A: GOOGL shares listed in public markets and traded on stock exchanges with regular voting rights.Ĭlass B: shares held by the company’s founders, with 10 times more voting power than Class A. The company’s board of directors previously approved the stock split on 1 February 2022, and its shareholders approved the plan at the 2022 Annual Meeting of Stockholders on 1 June, with the Google stock split date set for 15 July. On 15 July 2022, Alphabet conducted a 20-for-1 stock split in the form of a one-time special stock dividend on each Class A, Class B and Class C share. A company can choose to split its stock multiple times, subject to shareholder approval. Stock splits are also referred to as “one-time special stock dividend” in corporate announcements. The unit price of the stock will fall by a division of two or three, accordingly, after the split takes place.

You still have the same amount of chocolate, just in smaller pieces.”Ĭommon stock split ratios are 2-for-1 or 3-for-1, where a shareholder receives an additional one or two shares for every stock held. Your one big chocolate bar is broken down into multiple bite-size pieces.

When does nvda stock split take effect