Amazon Stock Splits: A Comprehensive Overview

Historical Stock Splits: A Timeline

Amazon (AMZN) has implemented a total of four stock splits throughout its history:

• June 2, 1998: 2-for-1 split
• January 5, 1999: 3-for-1 split
• September 2, 1999: 2-for-1 split
• June 6, 2022: 20-for-1 split

Effects of Stock Splits on Share Price

Stock splits do not affect the company's market capitalization or the value of shareholders' holdings. Instead, they increase the number of outstanding shares while proportionally reducing the price per share.

For example, in AMZN's most recent 20-for-1 split, each shareholder received 19 additional shares for every share they owned. While the total number of shares increased by 20 times, the price per share decreased by the same factor.

Benefits and Motivations for Stock Splits

Stock splits are often used by companies to:

• Increase liquidity by making shares more affordable for smaller investors
• Reflect the company's growth and improve market perception
• Facilitate employee stock options and other forms of compensation

Conclusion

Amazon's stock splits have played a significant role in the company's growth and accessibility to investors. By increasing the number of outstanding shares and lowering the price per share, AMZN has enabled a broader range of individuals to participate in its success. The company's consistent stock split history demonstrates its commitment to shareholder value and reflects its ongoing growth potential.