Amazon Stock Split Explained

What is a Stock Split?

In a stock split, a company increases the number of shares it has outstanding while decreasing their price. This means that investors who own shares in the company will receive more shares, but the total value of their investment will remain the same.

Stock splits occur when a company believes that its stock price has become too high. By splitting the stock, the company can make it more affordable for investors to purchase shares and potentially increase liquidity.

Amazon's Stock Split

Amazon is set to execute a 20-for-1 stock split on June 3, 2022. This means that for every one share of Amazon stock that investors own, they will receive 20 shares. The price of each share will be reduced by 20x.

Amazon's stock split is intended to make its shares more accessible to a wider range of investors. The company's stock price has risen significantly in recent years, making it unaffordable for some individuals to purchase shares.

It is important to note that a stock split does not affect the value of an investment. The total value of an investor's investment will remain the same after the split as it was before.