Amazon Announces 20-for-1 Stock Split and $10 Billion Share Buyback Program

Summary: This will be Amazon’s fourth stock split since it went public in 1997, and the largest to date. The first occurred in June 1998 in a 2-to-1 split, followed by a 3-to-1 split in January 1999. The last split also occurred in the dot-com era, with a 2-to-1 split in September. 1999.

Amazon in recent registration with the Securities and Exchange Commission (SEC) said its board of directors approved a 20-to-1 stock split.

The proposal is subject to shareholder approval at the company’s upcoming AGM scheduled for May 25, 2022. If all goes according to plan, the split will occur in early June, with split-adjusted trading expected to begin on June 6. 2022.

This was announced by an Amazon representative. CNBC The split will give employees more flexibility in how they manage their equity in the company and make the share price more accessible to those interested in investing in Amazon.

Amazon is the latest in a string of big tech companies trying to make their stock more accessible to mainstream investors. Last month, Alphabet announced a 20 to 1 split that will go into effect this summer. Nvidia completed a 4-to-1 split last July. Apple and Tesla split their shares in August 2020 on a 4:1 and 5:1 basis, respectively.

Amazon’s board of directors also allowed the company to buy back up to $10 billion of its common stock, which it believes will boost long-term value for shareholders.

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