For example, if a company board announces a 2-for-1 split, then you get one extra share for each share you own - but the share price will be halved. Similarly, in a stock split, it is very important to remember that the price of the share also is reduced. You still have the same amount of chocolate, just in smaller segments. Your one big dark chocolate bar is broken down into multiple bite-size pieces. Think about it like a dark chocolate bar. The value of your holdings is the same, just in smaller chunks. One share gets divided, or split, into multiple shares. Simply put, a stock split is exactly what it sounds like.
And, Apple ( AAPL) split its stocks in 2020. Back in July 2021, Nvidia ( NVDA) had a 4-1 split. Moreover, Alphabet ( GOOGL), the parent company of Google, announced plans for a 20-1 stock split in February. The upcoming 20-1 stock split is set to take effect on June 6, meaning that for each share of Amazon you own, you would get an additional 19 shares. Earlier this month, ( AMZN) announced plans for its fourth stock split since 1998.
The announcement follows a raft of stock split announcements.
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