The Strangest Stock Split You've Ever Seen Is About to Happen
It's been a big season for stock splits lately. Tech giants Amazon.com and Alphabet finally decided that it made sense to get rid of their four-digit price tags for a single share, implementing 20-for-1 stock splits that will bring both of their share prices back down to around $100 apiece. Tesla has also joined the fray, announcing its plans for a 3-for-1 stock split that will be its second in two years.
Yet by far, the announcement back in April from Canadian e-commerce disruptor Shopify (NYSE: SHOP) to do a 10-for-1 split was the most unusual such move in recent memory. Even under the normal standards under which companies decide to do stock splits, Shopify's decision seemed hesitant at best. Moreover, coming in conjunction with a controversial provision that changed the company's capital structure to give its CEO more power, the purpose of the Shopify stock split isn't quite clear.
On its face, Shopify's stock split looks the same as any other company's split. It gained approval on June 7, so Shopify shareholders will soon have 10 shares for every one they currently own.
Source Fool.com
