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Google (GOOG) Stock Split Takes Center Stage as Shares Cross $1,000

October 18, 2013 1:59 PM EDT Send to a Friend
Google (NASDAQ: GOOG) is creating a huge buzz on Wall Street Friday following strong Q3 results after the bell, which has led to a 13% surge in the stock - pushing it above the $1,000 level.

This is big news indeed for the Internet giant. However, the new eyeball-popping stock price has some investors asking - What about that stock split?

In April 2012, Google announced a two-for-one stock split. However, given shareholder angst about the non-voting nature of the new shares, and a subsequent lawsuit, the split was put on hold.

While a $1000 stock price looks pretty good on paper, it could turn some potential investors off. Just look at Berkshire Hathaway for example. Shares trade at an astronomical $175,759 per share, however the average daily volume is a measly few hundreds shares.

Many Google investors are clamoring for the company to split the stock now in order to get it to cheaper levels. While a split doesn't change anything fundamentally (instead of one pie, you have two half-pies), it is clear that buying a $1000 stock still turns some people off. Executing a stock split could increase liquidity and expand the shareholder base.

So where is Google at with the stock split? And is it still in play?

In June, Google settled the shareholder lawsuit about the stock split. The settlement still has to be approved by the court in Delaware. The settlement hearing is scheduled for October 28, with a ruling shortly after that, according to a Google spokesman.

"If the court approves the settlement, we expect our board to consider the issuance of the stock dividend," the spokesman told StreetInsider.com.

This time next year, if Google is again pressing the $1000 level it could be because the stock is up 100% when factoring in for the split. Investors would certainly welcome this and should welcome the split.




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