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Stock splits don't change the underlying value of a publicly traded company. But they do make it easier for investors to buy the stock, as well as make nominal swings in the stock price feel less dramatic.
In March, Amazon's (NASDAQ: AMZN) board of directors voted for a 20-for-1 stock split. On May 25, at the company's annual shareholder meeting, shareholders will have a chance to vote on the stock split. If approved, Amazon should initiate its stock split after market close on Friday, June 3, and then open on June 6 (Monday morning) at its new price. At Amazon's current price of roughly $2,150 per share at the time of this writing, that would make the post-split price $107 per share.
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