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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

80% of retail investor accounts lose money when trading CFDs with this provider.

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Market Insights

Amazon stock split

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Ever wanted to own Amazon … but thought the share price was too high for your budget?

Good news for you! On June 6, Amazon will become 20x cheaper because of the pre-announced corporate stock split!

What is a 20:1 Stock Split?

If you trade Amazon shares, or you always wanted to, then this is something that you should know!

A stock split is a corporate event that increases the number of shares of the company and at the same time will reduce the price of the share accordingly.

What will happen to the current shareholders?

This event does not result in any shareholder losing money since the shareholder who, for example, had 1 share with a market value of $2,400 will now have 20 shares with a market value of $2,400. So when the stock split event does take place and you open your app to check the price no need to panic if you see the price adjusted from $2,400 to $120! Your 1 share valued at $2,400 is now 20 shares at $120…so you still have $2,400 worth of Amazon shares in this case.

Why do companies make a decision to split their stock?

Stock splits increase market liquidity and make the shares more accessible:

After a share price has a long period of price increases, and in order to increase the market liquidity and make the stock more affordable to retail investors, the company may make this decision.
Stock splits make the market capitalisation look better. It will not increase the market capitalisation, but it could attract investors who prefer the lower price which could drive up the market capitalisation over time.

The bottom line

The Amazon share price split could be seen as a way to widen the company’s investor base by making the shares more affordable which will allow more investors to participate in the future success of the company. Let’s hope that Amazon as a business will continue to grow from strength to strength!

Go long or short on AMZN to potentially capitalise on market moves in both rising and falling markets.

Trade Amazon stock CFD NOW.

Not investment advice. Past performance does not guarantee or predict future performance.

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This page/website is not directed to EU clients and falls outside the European regulatory framework and is not in the scope of (among others) the Markets in Financial Instruments Directive (MiFID) II.
By continuing you acknowledge to view the content provided by Skilling (Seychelles) Limited, which is authorised and regulated by Seychelles Financial Supervisory Authority, and that your decision was made independently and at your exclusive initiative and no solicitation or recommendation has been made by Skilling or any other entity within the group.

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Important notice

This page/website is not directed to EU clients and falls outside the European regulatory framework and is not in the scope of (among others) the Markets in Financial Instruments Directive (MiFID) II.
By continuing you acknowledge to view the content provided by Skilling (Seychelles) Limited, which is authorised and regulated by Seychelles Financial Supervisory Authority, and that your decision was made independently and at your exclusive initiative and no solicitation or recommendation has been made by Skilling or any other entity within the group.

Continue