On Monday, Microsoft (MSFT) announced that it will split its stock into two classes, Class A and Class B. The decision comes after years of criticism from shareholders who argue that the company is too big to be able to effectively run as a single entity.
Class A shareholders will own about 60 percent of the company, while Class B shareholders will own the rest. This move will create a new class of Microsoft stock, which will be available to buy at a lower price point.
Shares of Microsoft are off 5.5 percent on the news.
Microsoft Corporation (MSFT) announced on October 12, 2018 that it would split its stock into two classes, with the smaller class consisting of common shares and the larger class consisting of preferred shares. The split was effective with the first split stock trading on Tuesday, November 3, 2018. Microsoft had proposed the split in a filing with the Securities and Exchange Commission on September 18, 2018. The split was widely expected to occur as a result of increased competition from Amazon (AMZN) and Facebook (FB) in the online gaming and social media sectors, respectively.
The last time microsoft stock split was was on November 3, 2013.
On December 3rd, Microsoft announced that they would be splitting their stock. This move was seen as a way to increase the value of the company and make it easier for shareholders to invest in. Microsoft’s stock was split into two stocks, Microsoft Capital and Microsoft Corporation. The split caused a great deal of controversy because it increased the value of Microsoft’s common stock by over 20%.