Catch a chance: Amazon approves 20:1 stock split
Amazon stock might become
more affordable after its shareholders approved
a 20-for-1 stock split at Wednesday’s annual meeting.
What does it mean for traders?
Splits
increase liquidity by making stocks
more accessible to retail traders and investors. This split
decreases the stock price from $2000 to $100, providing
a great opportunity to become a part of this giant company.
Traders will receive
20 stocks for each one they currently own.
The profit of clients isn’t affected by this. But split influences the stock value, charts, pending orders, stocks’ number in open positions, and opening prices.
A stock split doesn’t make a big change for the company either. However, over 70% of companies show
growth after this. Plus, it usually leads to
increased interest from retail traders.
The FBS analysts suggest the price may reverse at $2030 and fly towards the 50-month moving average at $2430, about 20% profit.
Would you add Amazon stock to your portfolio?
