(SEC) Amazon shares start trading at around $122 on Monday, in line with the company’s 20-for-1 stock split already approved by shareholders.
The stock split will take Amazon’s shares from the closing price of $2,440 on Friday, making them more attractive to a new crop of investors.
Amazon said that the split would give its employees more flexibility in managing their equity while increasing the accessibility of the shares to more investors.
Existing shareholders of Amazon will get 19 additional shares for each they own, although the total value remains the same.
Analysts also speculated that Amazon’s stock split would make it enter the Dow Jones Industrial Average, making it grow in value. The stock is currently not included due to its high price.
Wedbush analyst Dan Ives says that although stock splits do not change anything about the company, they make the shares more attractive to investors.
The stock split by Amazon is seen as likely to spur similar actions in Silicon Valley. Google also announced a 20-for-1 split in February, while Tesla and Shopify are moving in a similar direction.
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