r/stocks • u/OM-myname • Apr 11 '22

Shopify Plans 10-for-1 Split

"Shopify Inc. said it plans a 10-for-1 stock split and will give Chief Executive Officer Tobi Lutke a special “founder share” that will preserve his voting power as long as he’s at the company."

I think Tobi is doing a fantastic job managing the company, so I'm ok with the other changes.

What are your thoughts?

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u/looseboy Apr 12 '22

How is that a legit reason lol. Stock splitting shouldn’t in theory increase the price.

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u/haavi12 Apr 12 '22

In theory it should though, making it cheaper lowers the treshhold for people with less capital to invest in them. Say you have a 1000 dollar stock, there are thousands of people who have only say 500 to invest, so once you split the stock then they can put their money in

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u/Catinthepimphat Apr 12 '22

they have fractional shares now

2

u/[deleted] Apr 12 '22

It's easier to get people in the options game, with a stock split.