Amazon Announces Stock Split and Share Buyback
Amazon Announces Stock Split
Amazon has announced a 20-for-1 stock split, which would be the company's first since 1999. The split is expected to take effect on June 6, 2023, for shareholders of record as of May 25, 2023.
Reason for the Split
Amazon's stock has performed well in recent years, and the company believes that the split will make its shares more accessible to a wider range of investors. The split will also reduce the company's share price, which may make it more attractive to some investors.
Share Buyback
In addition to the stock split, Amazon has also announced a share buyback of up to 10 billion dollars. The buyback is expected to be completed over time, and the company will make decisions regarding the timing and amount of purchases based on market conditions.
Reason for the Buyback
Share buybacks can be used to return cash to shareholders, reduce the number of shares outstanding, and support the stock price. Amazon's buyback may be a sign that the company believes its stock is undervalued.
Impact on Shareholders
The stock split will not affect the total value of shareholders' investments. However, the buyback may have a positive impact on the stock price over time.
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