Amazon’s 20-for-1 Stock Split - What’s the Catch?

The shares of tech giant Amazon soared for 4 consecutive days now after the company announced a 20-to-1 split — the first in over 20 years. So, what’s the catch, and what does it say about this market?

The stock split means that if you acquired shares of Amazon, you own 19 extra shares for every one stock in your account. Sounds too good to be true? Well, there could be three reasons experts can think of offhand: 1) they want more people owning stock so everyone will feel invested in its success 2), sometimes companies need extra cash flow before launching new products or services 3); some investors might believe strongly about certain values/customers.

It’s not every day that a company shares its stock with absolutely no warning, but when Amazon did just this week alone, they have been able to push past all expectations by more than usual margins. The company is now trading at $3,226, a big leap from last weeks’ lowest $2,909, that’s more than 300 points in just 1 week!

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SmartFX is an international online Forex and CFDs trading firm offering 24 hours access to a diverse range of trading products including currency pairs.

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SmartFX

SmartFX

SmartFX is an international online Forex and CFDs trading firm offering 24 hours access to a diverse range of trading products including currency pairs.

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