Stock Splits Galore in 2022
Amazon Joins the Tech Stock Split Gang
In March, Amazon announced a 20-for-1 stock split and a $10 billion buyback. The news sent Amazon's stock price soaring, and it has continued to rise since then. Amazon is the latest in a long line of tech companies to announce stock splits in 2022, following in the footsteps of Alphabet, Tesla, and Nvidia.
Stock Splits: A Primer
A stock split is a corporate action in which a company divides its existing shares into a larger number of shares. This increases the number of shares outstanding but does not change the total value of the company. Stock splits are often done to make a company's stock more affordable to investors.
Why Companies Do Stock Splits
There are a number of reasons why companies do stock splits. One reason is to make their stock more affordable to investors. A lower stock price can make it easier for individual investors to buy shares of the company. This can increase the demand for the stock and drive up the price.
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