The online retail giant Amazon’s stock split has taken effect. The split was announced a few months ago, and after it was approved by shareholders, the stock rose. This is a 20-for-1 stock split, which means for every share an investor has, they will receive 20 shares. So for example, if I owned 2 shares of Amazon before the split, I will have 40 shares after the split. But, the value of each share will also be divided by 20. The closing price for the stock on Friday was $2,440, and the stock is currently about $126 dollars. In reality, stock splits have no real effect on the value of a company, as all they do is reduce the price of each share, while adding more shares. They are just used to attract more investors into the company. Amazon stock has already fallen over 26% this year.
Source: https://www.foxbusiness.com/markets/amazons-stock-has-split-and-trading-begins-monday
