(Bloomberg) — Alphabet Inc. announced a 20-for-1 stock split in the form of a one-time special stock dividend, aiming to draw a wider audience for its shares.
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“The reason for the split is it makes our shares more accessible,” Ruth Porat, Alphabet’s chief financial officer, said in a conference call with television anchors. “We thought it made sense to do.”
The new class of retail investors often weigh affordability and brand recognition when deciding which stocks to buy. Alphabet has been at a disadvantage, as its stock is expensive and uses the name of a holding company, rather than the globally recognized brand, Google.
Porat said the split announced on Tuesday will come at the close of business July 15.
Alphabet shares extended gains to 7% at 4:24 p.m. New York time after the stock split was announced.
For more on Alphabet fourth-quarter earnings, click here for our TOPLive blog.
(Removes erroneous reference to shares split value from fourth paragraph)
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