ALIBABA STOCK SPLIT

What Does Stock Split Mean:

You might be wondering, what is a stock split? The stock split is also known as the stock divide e. Stock
divide increases the number of shares in a company while causing a steady decrease in the market price
of shares having no impact on the total value of capitalization of the company.
Companies use the stock divide, to decrease per share price when it becomes extremely high that it
lacks worth. This is implemented after a long run, to attract small investors, as they deter when prices
are high.

Effects Of A Stock Split:

Considering some Effects Of the Stock Split,
• one major effect is that it enhances the liquidity of the stock. This is just like having one buyer
and seller for $100 and several buyers and sellers for $10.
• Some companies do not opt to split their stock, they try a different strategy, maintaining the
price high and decreasing the trading cost.
• In a market, with a high minimum number of shares will attract small investors, they have a
negligible overall impact on market value.

About ALIBABA Stock Split:

Alibaba is a group holding company, through its subsidiaries it assists in providing tech infrastructure
and marketing structure for brands and other businesses to engage with their stakeholders. The
company is engaged in providing retail and wholesale services, cloud computing, logistics services, local
consumer services, and cloud services along with digital media and entertainment that will never go
down your expectations. The company provides UC browser platforms as an initiative.
According to the report, Alibaba has had 0 splits. According to Alibaba history position of 1000 shares
would turn equally today. In 2019, Alibaba performed an 8 for 1 stock divide, at that time the available
ordinary shares increased up to 32 billion from 4 billion. A shareholder received 8 shares against 1 share
although the value remained constant. The stock split played a vital role for Alibaba to increase the
number of shares to be sold and this raised the capital. It was reported that shareholders are looking
forward for a stock split to take place again with greater split. While 8 for 1 stock split, the company
launched a secondary listing on the Hong Kong exchange.
Alibaba offered 500 million shares in China, which had impacted the balance by 2.3%. Earning per share
(EPS) can be bought down by diluted shares, for every individual investor. The investment of IPO in Hong
Kong went to $22.50 per share and assisted Alibaba in raising enough to maintain the IPO in 2019.
Despite the fact, that Alibaba has been trading for years their majority of the shares on NYSE, the
company is a Chinese organization. In America, Alibaba’s shares fell to 7% down while in Hong Kong it
fell 8.1% down. Alibaba may divide the shares down the line, but not likely to occur shortly.

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IPO Price Of ALIBABA:

In the history, Alibaba performed one stock split accompanied by secondary listing. Alibaba gained
publicity in sept. 2014 while it was founded by Ma, 15 years back. At the time of INITIAL PUBLIC OFFER, Alibaba had the largest offering. Share price per share was $68 with a total capital of $21.8 billion. After the decision of underwriting, IPO hit 25 billion.
Since the extraordinary expansion of IPO, it is yet to beat on the IPO. Considering the rapid growth, investors believe it’s a matter of time.

Unexpected Fall In ALIBABA’S Stock Price:

Currently, on Tuesday Chinese e-commerce, Alibaba reported third quarter financial results beating
forecast, but the price slipped after the founders crackdown.
Revenue grew up to 37%, year by year to reach $33.9 billion. Its sector cloud computing, gained
profitability for the first time in the market. Online retail market places reached 22 million customers in
China analyzing the last quarter.

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Core Strength In 2021:

During the pandemic lockdowns of Coronavirus, Alibaba gained relatively significant strength in earnings
in 2020 as people locked at home, preferred purchasing online rather than visiting the stores, that raise
the total capital amount with a major change in revenue. Alibaba, in the year of pandemic managed to
maintain its net revenue.
Alibaba’s annual shopping festival held in November every year, boosted quarterly sales to $74 million,
and 26% increase regarding Singles day. Alibaba’s cloud services generated revenue with an increase of
50% year by year resulting in generation of profit for the first time ever in December. Revenue from
logistics services increased by 51% yearly, expanding cross-border retail sales.

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