We all know that Amazon announced a 20 for 1 stock split in March but how does this affect shareholders and what do you need to know about this split?
Well, As people agreed to the split, The e-commerce giant’s stock split has officially taken effect.
Previously, For each Amazon share, 20 have taken its place but the prize has been reduced.
That means one share of Amazon traded before the split costs $2447, and now it’s different.
If you divide that number by 20, then the new share price after the split is around $122.3
But why did Amazon do this split?
Even though the market value of Amazon is still $1.2 trillion, This stock split gives more options for small investors.
E-commerce giants like Amazon do this because they want more and more people to buy their shares.
As this alone broadens the possibility of new buyers, The stock split is a strategic move to increase profits.
Overall, The new Amazon stock split is just cosmetic and shareholders don’t need to worry about it.
But we do not advise you to buy shares in Amazon just because the split is official now. After all, The company’s stock value is faring a 35% loss.