Amazon Is Splitting Its Stock. Why It Wants A Lower Share Price

Mar 10, 2022

https://liquidity-provider.com/app/uploads/2022/03/dizajn-bez-nazvaniya-2022-03-11t182720.081.png

Amazon stock is surging after the e-commerce and cloud computing company confirmed a 20-for-1 stock split and an extended stock-repurchase program.

While stock splits don't add value to holders mathematically—they're the financial equivalent of splitting a pie into smaller pieces—retail investors appreciate them, and split announcements often cause short-term rallies. Indeed, Amazon stocks rose 6.4% to $2,962.34 on Thursday.

Amazon also announced a $10 billion stock-repurchase program, which replaces a prior $5 billion stock-purchase authorization, under which it repurchased $2.12 billion of its own shares. The plan does not have a set end date.

The Amazon split comes on the heels of Alphabet's announcement in February that it would split its shares 20-for-1 beginning July 15. In 2020, Apple will divide its shares four-for-one.

One possible advantage of the Amazon stock split, as with Alphabet, might be the inclusion of the corporation's equities in the Dow Jones Industrial Average.

Adding high-priced stocks to the Dow is difficult because the index is price-weighted, which means that the same percentage move counts more for a high-priced stock than a low-priced firm. So a 1% rise in UnitedHealth, which trades for $486 per share and has the highest-priced stock in the Dow, has almost three times the weight in the index as a similar move in Apple, which finished Wednesday at $163.

Adding a stock with a four-digit price tag would immediately give the corporation the biggest weighting in the index since neither Amazon nor Alphabet are presently included in the index. The splits have the potential to alter that.

It is also worth noting that the Dow component list is updated infrequently—the most recent changes were in August 2020, when Amgen, Honeywell, and Salesforce.com were added to the index, replacing Exxon Mobil, Pfizer, and Raytheon.

The Amazon split will go into effect on May 27 at the end of the business day.

Subscribe Our Newsletter

Why Inflation Slowed in July and What It Means for the Fed's Work
Why Inflation Slowed in July and What It Means for the Fed’s Work

Even if inflation continues at historically high levels, this represents a healthy step toward a cooling economy. While the Fed is unlikely to reverse its aggressive monetary policy tightening until a downward trend becomes clearer, markets reacted positively to the news, with investors anticipating that the central bank will not need to move more dramatically than expected when officials meet again in September.

Banks and Finance
S&P 500, Nasdaq Mark Record Closing, Dow Eases - Wall Street Close
Wall Street Close: S&P 500, Nasdaq Mark Record Closing, Dow Eases

Despite a mixed day result on Thursday, US equities markets saw a small uptick in trade mood. Strong US statistics and statements from Fed members, as well as a fall in US inflation expectations and Treasury rates, might be the explanation.

Stocks
Liquidity Provider

How to Become a Liquidity Provider?
Let's find out what is the role of a liquidity provider, basic steps how to become a liquidity provider, partnership conditions for brokerage companies and more.

discover
What Is SWIFT Banking System?

Tamta

What Is SWIFT Banking System?

If you've ever received or dispatched funds to a destination beyond your home country's borders, you've likely encountered the SWIFT banking system. This quiet workhorse in the background of international finance plays a vital role in your ability to smoothly transfer money around the globe, often within a matter of hours.

Fintech

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Best Bitcoin Wallets in 2023: Comparing Features, Security, and Usability

    Best Bitcoin Wallets in 2023

    Alexander

    Top Rising NFT Artists to Watch Out for in 2023 And Beyond

    Top Rising NFT Artists to Watch Out for in 2023

    Alexander

    Insuring Your Future: What Type of Insurance to Buy?

    Insuring Your Future: What Type of Insurance to Buy

    Alexander

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Alexander

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection of Your Digital Assets.

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection

    Alexander

    Roth IRA Guide: What It Is and What You Need to Know.

    Roth IRA Guide: What It Is and What You Need to Know

    Alexander

    From Gold to Index Funds and Crypto: Where to Invest in 2023 for Long Term?

    From Gold to Index Funds and Crypto: Where to Invest in 2023

    Alexander

    Understanding Algorithmic Trading: A Guide for Beginners

    Understanding Algorithmic Trading: A Guide

    Alexander

    Stop Vs. Stop-Limit Order: How Do They Differ?

    Stop Vs. Stop-Limit Order: How Do They Differ

    Alexander

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Deborah Middleton

    How MEC Rules Can Impact Your Life Insurance Policy

    How MEC Rules Can Impact Your Life Insurance Policy.

    Deborah Middleton

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Deborah Middleton

    Managing Your Financials The Right Way – A Startup Guide 

    Managing Your Financials The Right Way - A Startup Guide

    Anna

    A Beginner Guide To The Crypto Analysis Tools.

    A Beginner Guide To The Crypto Analysis Tools.

    Anna

    A Brief Introduction to Scalping

    A Brief Introduction to Scalping.

    Anna

    How to Invest in Stocks: A Beginner’s Guide

    How to Invest in Stocks: A Beginner’s Guide

    Anna

    Tips On Finding Crypto Liquidity Providers In 2023

    Tips On Finding Crypto Liquidity Providers In 2023.

    Anna

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Anna

    A Brief and Comprehensive Guide to Spot Trading.

    A Brief and Comprehensive Guide to Spot Trading.

    Anna

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    Tamta

    What Is SWIFT Banking System?

    What Is SWIFT Banking System?

    Tamta

    How Liquidity Providers Drive The Foreign Exchange Market

    How Liquidity Providers Drive The Foreign Exchange Market

    Tamta

    How to Start Investing In Crypto

    How to Start Investing In Crypto

    Tamta

    5 Best Crypto CFD Liquidity Providers 2023

    5 Best Crypto CFD Liquidity Providers 2023.
    Latest News - Liquidity Provider: Business & FinTech Media
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site.