Hi! I'm a software developer, I don't know much how stocks work and today I was playing around with Alpaca stock api I found a really big difference of price between 2 dates on the GOOG stocks (and also on the GOOGL stock). Here is the concrete thing I saw:
The associated data
| (index) | ClosePrice | HighPrice | LowPrice | TradeCount | OpenPrice | Timestamp | Volume | VWAP |
|---|---|---|---|---|---|---|---|---|
| 3 | 2228.8 | 2239.75 | 2186.51 | 78622 | 2216.52 | '7/14/2022, 4:00:00 AM' | 1734197 | 2220.851805 |
| 4 | 2255.34 | 2280.01 | 2236.45 | 75881 | 2259.26 | '7/15/2022, 4:00:00 AM' | 1906114 | 2254.966769 |
| 5 | 109.91 | 114.8 | 109.3 | 478640 | 113.44 | '7/18/2022, 4:00:00 AM' | 35360330 | 111.74511 |
| 6 | 114.62 | 114.81 | 110.5 | 398489 | 111.73 | '7/19/2022, 4:00:00 AM' | 34351586 | 113.410851 |
So searched about this I found that it was due to “stock split”. From what I understood about this, is basically increasing the number of available stocks but keeping the proportion of what the company is worth. Meaning if before I had 10 stocks at 500, now I'll have 20 stocks at 250. I get that part, but I couldn't figure why this is done, what does the company gains by doing this.
Hope this is a valid question to ask on this subreddit. Thanks in advance!
Leave a Reply