Amazon Announces Stock Split and Share Buyback
After tech companies like Apple and Tesla, Amazon is also planning a stock split – for the first time in 23 years. Trading is scheduled to start in June.
The world’s largest online retailer Amazon is planning its first stock split in 23 years. The US group announced on Wednesday evening that it is intended to give shareholders 19 additional share certificates for one share. Trading is scheduled to begin on June 6th.
At the same time, the Seattle-based company announced that its board of directors had approved a $10 billion share buyback program. Amazon shares rose more than 7 percent in after-hours trading. So far this year, the paper has lost around 16 percent in value.
“The stock split will give our employees more flexibility in managing their equity and the share price will be more affordable for people who want to invest in our company,” said a company spokesman. On Wednesday, Amazon shares closed at $2785.58. The stock market value has increased in the past two years .
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