Amazon Announces 20-for-1 Stock Split, $10 Billion Buyback

Company Hasn't Split Stock Since 1999

Split Goes Into Effect Today, June 6

Amazon on Wednesday said its board of directors has approved a 20-for-1 stock split. The e-commerce giant's stock has been on a tear in recent years, and the split is likely to make it more accessible to individual investors. Amazon last split its stock in 1999.

The 20-1 stock split goes into effect today, June 6. This means that for every share of Amazon stock that investors own, they will now receive 20 shares. The stock split will not affect the value of Amazon's overall market capitalization.

In addition to the stock split, Amazon also announced a $10 billion share buyback program. This means that Amazon will be using its cash to buy back shares of its own stock. Share buybacks can be a way for companies to return value to shareholders and boost their stock price.

The news of Amazon's stock split and share buyback program was well-received by investors. Amazon's stock price rose by more than 5% in premarket trading on Wednesday.