1. What Is AMZN Stock Split?

A stock split is a corporate action where a company divides its existing shares into multiple shares to boost liquidity. AMZN (Amazon) has undergone several stock splits in its history to make shares more accessible to investors.

2. How Does The Calculator Work?

The calculator uses the stock split formula:

Where:

• \( \text{old\_shares} \) — Number of shares before the split
• \( \text{ratio} \) — Split ratio (e.g., 2:1 split = 2, 3:1 split = 3)
• \( \text{new\_shares} \) — Number of shares after the split

Explanation: The formula calculates how many shares you'll own after a stock split based on your current holdings and the split ratio.

3. Importance Of Stock Split Calculation

Details: Understanding stock splits helps investors track their holdings accurately, calculate new share prices, and assess the impact on their investment portfolio.

4. Using The Calculator

Tips: Enter your current number of shares and the split ratio. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What happens to share price during a stock split?
A: The share price is divided by the split ratio. For example, in a 2:1 split, the price is halved while the number of shares doubles.

Q2: Does a stock split change the value of my investment?
A: No, the total value remains the same immediately after the split. You own more shares but each is worth proportionally less.

Q3: How often has AMZN split its stock?
A: Amazon has split its stock three times in its history: in 1998 (2:1), 1999 (3:1), and 1999 (2:1).

Q4: Do I need to do anything when a stock splits?
A: No, your broker automatically adjusts your holdings. The new shares typically appear in your account on the split effective date.

Q5: Why do companies like AMZN perform stock splits?
A: Companies split stock to make shares more affordable to retail investors, increase liquidity, and potentially attract more buyers.