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Online giant Amazon (Ticker: AMZN) is scheduled to conduct a 20-for-1 stock split on Friday June 3rd, giving millions of Americans an opportunity to own the highly-rated stock.
“This means the price per share of a stock will decrease by an increase in the overall number of shares. However, the value of each investor’s position will remain unchanged,” analysts from Stash, the online stock market platform, said. ”
Stash gave the following example of what the split means to investors.
“Let’s say an investor purchased one whole share of Amazon (AMZN) at a hypothetical price of $2,000. On the morning of June 6, 2022, they would see these changes in their portfolio:
According to Stash:
“When a company decides to split its stock, it’s literally doing just that—breaking stocks into additional shares. By splitting its stock, a company attempts to decrease the dollar price per share of its stock by increasing the amount of shares out in the market.”
Click here to read more about stock splits from Stash.
Click here to read Analysis from Motley Fool whether to buy Amazon stock before the split.
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