Breaking News: Amazon’s board has approved the company’s first stock split in more than two decades.
The 20-for-1 split will revalue Amazon’s individual shares, aiming to make them more affordable for individual investors, recognizing the long-term increase in the company’s share price. The change will take effect in June if shareholders approve the split at the company’s annual meeting in May.
Amazon’s announcement follows a similar move by Google parent company Alphabet announced in February.
“This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company,” a spokesperson said in a statement.
More details from an Amazon SEC filing: “Subject to shareholder approval of the Amendment, each Company shareholder of record at the close of business on May 27, 2022 will have 19 additional shares for every one share held as of such date reflected in their accounts on or about June 3, 2022. Trading is expected to begin on a split-adjusted basis on June 6, 2022.”
Developing story, more to come.