Amazon Stock Split: What You Need To Know

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?

Arrow

Well, As people agreed to the split, The e-commerce giant’s stock split has officially taken effect.

Arrow

Previously, For each Amazon share, 20 have taken its place but the prize has been reduced.

Arrow

That means one share of Amazon traded before the split costs $2447, and now it’s different.

Arrow

If you divide that number by 20, then the new share price after the split is around $122.3

Arrow

But why did Amazon do this split?

Arrow

Even though the market value of Amazon is still $1.2 trillion, This stock split gives more options for small investors.

Arrow

E-commerce giants like Amazon do this because they want more and more people to buy their shares.

Arrow

As this alone broadens the possibility of new buyers, The stock split is a strategic move to increase profits.

Arrow

Overall, The new Amazon stock split is just cosmetic and shareholders don’t need to worry about it.

Arrow

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.

Arrow