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Alphabet Stock Split Aimed at Bringing Google Shares to Masses

  • Move would drop share price to about $140 from almost $3000
  • Split could help Alphabet gain entry to Dow Industrial Average
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WATCH: 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.Source: Bloomberg
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Alphabet Inc. is bringing big stock splits back to the market, so prospective buyers won’t need upwards of $3,000 to own a share. Taking down the price achieves something else for the Google parent: making it possible to put America’s third-biggest company into its most venerated stock average.

The company said late Tuesday it will increase its outstanding shares by a 20-to-1 ratio, aiming to entice the numerous small investors who have flocked to the stock market during the pandemic. The shares jumped 10% in U.S. premarket trading on Wednesday, and were set to surpass their record high reached last November.