Facebook Announces 5-For-1 Stock Split
Facebook has announced a 5-for-1 stock split of the private company’s shares. Jonny Thaw, a Facebook spokesperson, told Reuters and CNET that “The reason is that the stock has risen significantly since our last split, and this allows us to bring it into a similar price range as other private companies. It also allows us to give everyone larger stock unit grants without increasing dilution for shareholders.”
In other words it’s a cosmetic change that will help artificially increase the perceived value of the shares.
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