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Amazon Stock Jumps on  Split day Following a 20-for-1

Amazon stock jumps on  split day following a 20-for-1

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The first day of trading after Amazon (AMZN) split its shares 20-for-1 resulted in an increase of more than 4 percent for the company’s stock price.

"Amazon stock jumps on  split day following a 20-for-1"
bloomberg com: Amazon stock jumps on  split day following a 20-for-1

The e-commerce giant made the announcement in March that shareholders will be entitled to 19 extra shares for every existing share, once the split effect was taken into account. As of the closing of trading on Friday, Amazon’s stock had fallen almost 12 percent (since the announcement) despite a general decline throughout the market as a whole.

Amazon has now performed a stock split for the fourth time

Since the company went public in 1997, Amazon has now performed a stock split for the fourth time.

The transaction does not have an effect on the value of the stock or the market capitalization of the firm at the time of the split. It is viewed as a cosmetic enhancement to attract retail investors and to make the firm more likely to become a candidate for entrance into the Dow Jones Industrial Average. This was done in the hopes of increasing the company’s chances of being included in that index. Additionally, options traders will have easier access to shares as a result of the shift.

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Amazon is the most recent major publicly-traded company to split its shares in the past several years. In August of 2020, Tesla (TSLA) split its share count in a ratio of 5 to 1. The manufacturer of electric vehicles has out a proposal for a second stock split in March. The leading technology company Apple (AAPL) announced in 2020 that it would split its stock 4 for 1.

On July 15, the split ratio of 20-for-1 will be applied to Alphabet (GOOGL) shares, and trading will then commence.

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Shopify (SHOP) made the announcement

Shopify (SHOP) made the announcement of a 10-for-1 stock split in April. The stock of the Canadian e-commerce company has performed much more poorly than that of Amazon or any of the other major players. In November, Shopify’s stock reached an all-time high and finished at $1690 per share. Since reaching that high point, the stock price has fallen by 78%.

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