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Alibaba Stock Split: What BABA Investors Should Know About the 1-for-8 Proposal

William White

An Alibaba stock split proposal has been made by the company in an effort to increase its number of shares.

Alibaba Stock Split: What BABA Investors Should Know About the 1-for-8 Proposal

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Here’s what investors in Alibaba (NYSE: BABA ) need to know about the stock split proposal.

  • The Alibaba stock split would have the company dividing one share into eight shares.
  • This means that the company will be increasing its number of shares from 4 billion to 32 billion.
  • The company says that it will be holding a vote on the Alibaba stock split proposal during its annual shareholders meeting.
  • This meeting will be taking place on July 15, 2019.
  • If shareholders approve of the stock split, the Alibaba says that it will occur no later than July 15, 2020.
  • The company is advising shareholders in BABA stock to vote in favor of the plans to split the stock.
  • Alibaba claims that the stock split will also create a lower point of entry for more investors.
  • It says that this will give the company more flexible capital to work with in the future.
  • The stock split may have to do with the company’s plans to hold an initial public offering in Hong Kong.
  • Some reports claim that the company may be able to raise as much as $20 billion from an IPO in Hong Kong.

You can follow these links to learn more about the Alibaba stock split proposal.

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BABA stock was up 1% as of Monday afternoon.

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As of this writing, William White did not hold a position in any of the aforementioned securities.

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