Alphabet Inc.’s massive stock splits are returning to the market, which comprehends that potential buyers won’t require more than $3000 to buy its share. The down pricing step makes it possible to position USA’s 3rd biggest firm into its most venerated stock average.

In a brief statement late Tuesday, the company promised to increase its outstanding stocks by a 20-to-1 ratio with the aim to entice several small investors who have swarmed to the stock markets at the onset of the Pandemic.

“Alphabet posted fourth-quarter sales and profit that topped analysts’ projections, and also announced that it will do a 20-to-1 stock split”, Bloomberg Tweeted.

“The reason for the split is it makes our shares more accessible,” said the company’s chief financial officer, Ruth Porat, in a press conference with TV anchors. “We thought it made sense to do.”

The new class for the retail investors may often weigh on brand recognition and affordability when deciding which stocks to buy. Alphabet previously was at disadvantage, as its stock is quite expensive and also uses the name of its holding company, rather than utilizing the globally recognized brand, Google.

Roughly, the 20-for-1 split will decline the prices of class A shares to $138, as per Tuesday’s closing rate of $2,752.88. It is the first time since 2005 the company’s share price has lowered this much.

“Institutional investors can buy in size and the price per share doesn’t matter,” said Ned Davis Research’s chief U.S. strategist, Ed Clissold. “But for a smaller investor, a lower price-per-share makes it easier for them to buy a reasonable number of shares.”

In other good news, it could gain entry to the Dow Jones Industrial Average, which has been a barrier for the 4 digits stock prices companies like Amazon and Alphabet due to its price-weighted index, said the market strategist, Michael O’Rourke at Jones trading.

The Dow’s price weighing index is more likely to be based on share or stock price rather than market cap, and in Alphabet Inc’s pre-split state, it was too massive to add to the list without overwhelming the other remaining members.

Share splits have become a rare action in the stock markets of the US, with only two observed in 2019. While there had been 47 splits in 2007, 2006 and 2005.  However, Tesla and Apple brought it back into the spotlight after splitting their stocks in 2020.