A Major Move For The E Commerce Giant

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Amazon Announces 20-for-1 Stock Split: A Game-Changer for Investors

A Major Move for the E-Commerce Giant

Amazon (NASDAQ: AMZN) has announced a significant move that has sent shockwaves through the investment community: a 20-for-1 stock split. This bold decision is set to take effect on June 6, 2023, a move that will undoubtedly reshape the landscape of Amazon's stock performance.

Breaking Down the Stock Split

A stock split is a corporate action that increases the number of outstanding shares while decreasing the price per share. In the case of Amazon's 20-for-1 split, each shareholder will receive 20 shares for every share they currently hold. As a result, the number of Amazon shares available in the market will increase by a factor of 20, while the price per share will decrease by the same amount.

Why Amazon Split Its Stock

Companies typically split their stock to make them more affordable for retail investors. By decreasing the share price, Amazon makes its stock more accessible to a wider range of investors who may have been previously hesitant to invest due to the high price tag. Historically, stock splits have been a positive indicator for a company's future growth prospects.

What Does This Mean for Investors?

For current Amazon shareholders, the stock split has several implications: * Increased Shares: Shareholders will receive 19 additional shares for every share they currently own, significantly increasing their total number of shares. * Lower Share Price: The price per share will be reduced by a factor of 20, making Amazon stock more affordable for retail investors. It is important to note that the stock split does not affect the intrinsic value of the company. Amazon will have the same market capitalization after the split as it did before.

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