(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.

Most Read from Bloomberg

  • Teen Who Demanded $50,000 From Elon Musk Is Now Targeting More Billionaire Jets

  • Covid-Infected HIV Patient Developed Mutations, Study Shows

  • SeaWorld Makes $3.4 Billion Takeover Bid for Cedar Fair

  • U.S. Stocks Post Best Three-Day Rally Since 2020: Markets Wrap

  • India Finally Warms to Crypto With Tax, Digital Currency

“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.

The stock split could lead to Alphabet’s listing on the Dow Jones Industrial Average, one of the most commonly quoted indexes that holds 30 blue-chip companies. It could also help the company on its path to cross a $2 trillion market cap.

As part of the stock split, Google’s parent will give $0.001 for each share of the company’s Class A stock, Class B stock and Class C stock, according to an 8K filing Tuesday. Porat said to expect the split at the close of business July 15.

A prior stock split happened in 2014, after the company’s shares topped $1,000.

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.

Most Read from Bloomberg Businessweek

  • Rent Inflation Shows That Landlords Have the Upper Hand Again

  • China’s Local Governments Are at Risk of a Puerto Rico Moment

  • China’s American-Born Olympic Star Is Being Very Careful

  • Pharmacy Workers Are the Pandemic’s Invisible Victims

  • What Happens When Russian Hackers Come for the Electrical Grid

©2022 Bloomberg L.P.

(305) 707 0888