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Home / Business / Apple and Tesla just announced the stock splits. Here’s what this means for your investment

Apple and Tesla just announced the stock splits. Here’s what this means for your investment



Here’s what you need to know if your stock is splitting into two (or three, or four, or five).

A stock split does exactly what it does sounds like: A share is divided into multiple shares, with no change in the total value of investor properties. They are simply divided into more individual units.

So who benefits from a share split?

Reducing a company’s share price can place its shares within the reach of smaller, individual investors. This is good for the liquidity of the company and creates more demand for its shares.

On Monday, Apple, one of the most valuable companies in the world, announced a 4-for-1
share split, which will take effect on August 31st. A single stock was trading at around $ 450 on Wednesday. Starting in September, this will be closer to $ 100.
This will be the fifth division of Apple shares since its release.

The price change will be more dramatic at Tesla, whose shares were trading at more than $ 1,500 a share on Wednesday. Its 5-for-1 split, also set for Aug. 31, will bring an individual share in the $ 300 range.

This is not yet exactly cheap, but it has already been a boon for both companies, whose stock values ​​have risen even further since announcing their moves.

Some companies, meanwhile, do not allow themselves to fully share their shares, and only look at the increasing value of their increasingly high stakes. One such example is Warren Buffett’s Berkshire Hathaway.
Berkshire Class A (BRKA) the shares ended Wednesday with nearly $ 320,000 shares. You can do the math in as many ways as you might want to share that state. company class B (BRKB) the shares, which have been split in the past, are a much more affordable $ 213 per share.

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