Amazon 20 for 1 Stock Split: What You Need to Know
“It’s great for the person that couldn’t afford to invest $3,000 for one share”
Amazon has announced a 20 for 1 stock split and many people are wondering what this means for Amazon shareholders. This is a major event, and it’s important to understand the implications before Amazon’s stock begins trading at split prices on June 6th.
What does 20 for 1 Stock Split mean?
Let’s say you have 1 share of amazon stock valued at $3,000, on June 3rd at the close of the market, the stock will split 20 times. Divide that 1 share of 3,000 into 20 shares, making each stock be valued at $150. But, now you have 20 shares instead of 1.
It’s great for the people that have a share of stock, but what about the people that don’t?
It’s great for the person that couldn’t afford to invest $3,000 for one share, maybe you invest $1,500 when the shares drop after the split and that would get you 10 shares for half the price of what you would have only gotten one share.
What should I do to prepare for this event?
My advice and something I will be doing are to start saving as much as you can. In my opinion, the stock will not stay low very long and I think it will be above $500 by Christmas of this year. Save and invest on June 6th, Amazon isn’t going anywhere for a long time and this will be a great investment for your retirement or your kid’s college.
The stock market is scary, I’m not sure I want to take that chance
The stock market can be scary and you always have a risk with any investment, even if it’s not the stock market. But, I don’t look at investment into a stock, it’s an investment into a company that has employees and a lot of customers. Plus, it’s one of the largest companies in the world.
Closing thoughts
I’m not a professional when it comes to the stock market and this is not professional advice, this is one man’s opinion. I would not be sharing anything like this if I wasn’t doing it myself and no one said you have to spend your life savings on it. But, I think it will be a great investment for the long haul.
What is your opinion on buying after the split?
Do you think this is a good investment?
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