Welcome to WebmasterWorld Guest from

Forum Moderators: goodroi

Message Too Old, No Replies

Google "2 for 1 stock split"

This is a strange financial move!

6:42 am on Apr 14, 2012 (gmt 0)


WebmasterWorld Administrator skibum is a WebmasterWorld Top Contributor of All Time 10+ Year Member

joined:Sept 20, 2000
votes: 1

In the Founders Letter [investor.google.com], Google mentions a stock split. It is not at all the way stock splits are usually done, of course. For every share of existing voting stock someone has they give them an additional share of stock that has no voting rights and has a different ticker symbol.

I've never heard of a company do a stock split where the split shares trade under a different symbol unless the company is being broken up into two separate companies.

What is likely to happen here? It seems that since the "split" shares will have a different ticker symbol they'll be seen as two different stocks. Since the stock isn't really getting split with the value cut in half, the price of the existing stock probably won't drop by half (or maybe not at all). What value does the stock with the new ticker symbol start trading at since it is not the same asset as that from which it was split?

If the value of existing shares does not go down when this new "split" is issued and the stock with the new ticker symbol has any significant value, then it would be a good investment to snap up G stock now.

It is also a way for them to issue more stock and still keep a death grip on control of the company.

Join The Conversation

Moderators and Top Contributors

Hot Threads This Week

Featured Threads

Free SEO Tools

Hire Expert Members