Amazon’s 20-1 Stock Split Explained [this is what you need to know!]

I hope this helps:

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• Stock splits have triggered short-term rallies in the past, and Amazon shares are up over 4,300% since its last stock split was announced
• A stock split basically means that one single share gets split into multiple shares, it’s like trading ONE $20 bill for TWENTY $1 bills
• Mathematically, stock splits don't create any “new value” for owners, or fundamentally change anything about a company. However, they can provide short-term momentum.
• Stock Splits can be seen as a marketing maneuver, aimed at making a high-priced stocks more affordable to retail investors and also make options contracts more affordable
• Bank of America research analysts found that since 1980, S&P 500 companies that announced stock splits “significantly outperformed the index 3, 6, and 12 months after the initial announcement.” Over 12 months, stocks that announced splits gained an average of 25% compared, to a 9% gain in the S&P 500. 
• My prediction, is that Amazon will also be added to the Dow Jones Industrial Average (a group of America’s top 30 companies), forcing Index Funds which mirror the DOW, to purchase Amazon shares now
• Adding high-priced shares to the Dow is problematic because the index is price weighted instead of market cap weighted, meaning the same percentage move matters more for a high priced stock than a low priced one.
• Apple, announced a 7-for-1 stock split in 2014, which brought it from over $600 a share, to less than $100 per share, and it joined the Dow in 2015.
• An Amazon spokesperson  said the split-adjusted share price will make shares more accessible to potential investors and give employees more flexibility in how they manage their stock in the company
• This is Amazon's first stock split in over 20 years, since the dot-com bubble., and the fourth since Amazon’s IPO in 1997. Amazon did a 2-for-1 split on June 2, 1998; a 3-for-1 split on Jan. 5, 1999; and a 2-for-1 split on Sept. 2, 1999.
• Many other tech companies recently has stock splits as well. Google announced a 20-for-one split in February, Apple announced a 4-for-1 split in August 2020, Tesla announced a 5-to-1 split on August 2020 (Nvidia announced a 4-to-1 split in July 2021.)