The online retail giant Amazon announced a 20-for-1 stock split. This means that every share of Amazon will be worth 20 times less, but there are 20 times more shares. For example, let’s say Company A was worth $1,000, so each share would be priced at $10, and there would be 100 shares in the company. If the company announced a 2-for-1 stock split, then each share would be worth 2 times less, but there would be 2 times more shares. The company would still be worth $1,000, but each share would be $5, and there would be 200 shares. So, stock splits generally don’t have any impact on a company, but they still happen. One reason is so that lower-experienced investors may be more attracted to a company with a lower price. Amazon’s stock split will happen on June 6th.
Source: https://www.cnn.com/2022/03/09/investing/amazon-stock-split/index.html
