Meanwhile, Google (GOOGL) completed its 20-for-1 stock split on July 15.
Tesla (TSLA) closed at $864.51 on Friday.
If the split were to occur at that stock price, the resulting shares would trade at $288.17.
What’s a stock split?
Stock splits cause the total share count to increase and the stock price to go down.
Shareholders retain their full relative investment before and after the split.
Why do companies split their stock?
Stock splits happen for a variety of reasons.
Companies are concerned about being included on these indexes because that can allow them to raise funds more easily.
What is the process for a stock split?
The actual process for implementing a stock split varies from company to company.
Generally, a company will propose a stock split and explain the intent and process to shareholders.
In some cases, the company needs to seek approval from shareholders before moving forward with a split.
What are some significant splits in recent years?
What do stock splits mean for current and future investors?
In theory, investors shouldn’t gain or lose any share value due to a stock split.
But in reality, this doesn’t always happen.
Stock splits also open up the market for newer investors to buy shares at a lower price.
