If you’ve ever wanted to buy Amazon stock but couldn’t afford it, you may now have your chance. Amazon just announced a 20-for-1 split with its stock. As of March 9, Amazon stock would cost you $2,785 per share. If the stock is split today (March 10), you could purchase one share of Amazon stock for $139.
So, why the split? There are several reasons. 1) Splits can make their stock more reasonable and within reach for individual investors. 2) It also helps companies gain liquidity and 3) splits can create more demand for a company’s stock.
If Amazon’s shareholders approve the split in May, the split will go into effect on June 6.
And for those with Amazon stock already, don’t worry. Your stakes will still be worth the same. The experts say you’ll actually be holding 20 times more shares at the end of the day.