As you may know, Apple and Tesla announced weeks back that they will be splitting their stocks at the end of the month.
Apple (AAPL) is set to split its stock 4-for-1 and Tesla (TSLA) 5-for-1 today.
#StockMarket
#stocks
Apple (AAPL) is set to split its stock 4-for-1 and Tesla (TSLA) 5-for-1 today.
#StockMarket
#stocks
What is a stock split?
A stock split is an action taken by companies who have witnessed an increase in share price to levels that are either too high or are beyond the price levels of similar companies in their sector, to divide their existing shares into two or more shares.
A stock split is an action taken by companies who have witnessed an increase in share price to levels that are either too high or are beyond the price levels of similar companies in their sector, to divide their existing shares into two or more shares.
Why #stock split?
The primary motive is to make the shares more affordable to small investors even though the underlying value of the company has not changed. Often companies make such moves because they would like their stock to be more accessible to a broader base of investors
The primary motive is to make the shares more affordable to small investors even though the underlying value of the company has not changed. Often companies make such moves because they would like their stock to be more accessible to a broader base of investors
Important implications of the stock split
• The number of shares of each client’s position will multiply by four (Apple), or by five (Tesla)
• Post-split, the open price of each position will be adjusted, which will be the original price divided by the new split number.
• The number of shares of each client’s position will multiply by four (Apple), or by five (Tesla)
• Post-split, the open price of each position will be adjusted, which will be the original price divided by the new split number.
The estimated post-split price will be 1/4th Apple and 1/5th Tesla of the closing price on the 28th of August.
• All pending orders at the time of the split (Buy Limit, Sell Limit, Buy Stop, Sell Stop, etc) will be cancelled while the splits are processing.
• All pending orders at the time of the split (Buy Limit, Sell Limit, Buy Stop, Sell Stop, etc) will be cancelled while the splits are processing.
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