GOOGL stocks fall ahead of the Google Stock Split

Shares of the leading search engine operator, Alphabet (GOOGL -1.53%) (GOOG -1.48%), have hit a roadblock, falling 23% since the start of the year.

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Shares of the leading search engine operator, Alphabet (GOOGL -1.53%) (GOOG -1.48%), have hit a roadblock, falling 23% since the start of the year. This comes right when The company is scheduled to undergo a 20-for-1 stock split on Friday, July 15, with the aim of making its shares more affordable and alluring to retail investors.

Usually, When companies initiate stock splits, the number of outstanding shares increases and the price per share decreases. This occurs proportionately so that the market capitalization f the company remains unaltered.

Alphabet investors will receive an added 19 shares for each one they already own. It will be the company’s first stock split since April 2014, when it split its shares 1,998-for-1,000.

Google’s stock (GOOGL) is one of the priciest equities on the market. Currently, Class A and Class C shares take the fourth and the fifth spots. As the most expensive stocks to own on Wall Street.

Ruth Porat, the firm’s chief financial officer, was asked why the company is splitting the stock. She said. “The reason for the split is to make our shares more accessible. We thought it made sense to do so.”