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Nvda stock split announcement7/9/2023 By reducing its stock price from roughly $3,000 now to $150 a share, Alphabet would make its stock more palatable for the 30-member Dow, which is a price-weighted index, meaning that high-priced stocks have an outsized influence. From 2008 through last year, that number is down to only nine.įor Alphabet, analysts said the stock split could pave the way for its addition to the Dow Jones Industrial Average (.DJI). However, stocks splits have become "less and less common" over the past 20 years, according to Bespoke.įrom 2001 to 2007, the median number of S&P 500 stock splits was 35 in a year, according to Bespoke. "Alphabet’s announcement will almost certainly end up increasing retail investors’ activity in the stock," Vanda analysts said in emailed comments to Reuters.Īside from Alphabet, there are another 27 stocks in the S&P 500 with share prices above $500, notes Bespoke Investment Group. When Apple announced its 4-for-1 split in July 2020, retail investors went from purchasing less than $150 million in Apple stock each week to nearly $1 billion, according to Vanda.Īfter Tesla's 5-for-1 split announcement in August 2020, retail buying jumped from $30 million-$40 million per week pre-announcement to over $700 million a few weeks later. Retail buying surged in the wake of both the Apple and Tesla stock split announcements, analysts at Vanda Research said. "We observe lower retail participation in high-priced stocks than low-priced stocks." "One would much rather spend $100 and own 100 shares, than to own 0.1 share," Cheng said.
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