Tesla Stock Split Explained! Is A Stock Split Good Or Bad for Your Portfolio?
Tesla just announced a 5 for 1 stock split. Last week Apple announced a 4 to 1 stock split. In this video we'll discuss what is a stock split? And Is a stock split good or bad for your portfolio.
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Tesla stock split explained! Is a stock split good or bad for your portfolio? In this video you'll get the investing 101 course that answers: What is a stock split? What happens when a stock splits? Why would a company want to split it's stock? And also: What does a stock split mean for investors? Is a stock split a good time to buy or a is a stock split a good time to sell. And more generally, is a stock split good or bad for my portfolio?!
When a stock like Tesla or Apple sees their stock price get really high they may perform a stock split in order to make the stock more appealing to people investing smaller amounts of money. Stock splits don't change the value of the stock, because the number of shares outstanding increases by the same multiple that the stock price decreases by. So if you own 1 share of tesla stock now, after the tesla stock split you'll own 5 shares of tesla stock. If you own 1 share of apple stock, after the apple stock split you'll own 4 shares of apple stock. While it seems like getting 5 free shares of tesla stock will put you on the fast track to owning a tesla model 3, or even a model S, model X or model Y! You have to remember that a stock split doesn't change the worth of a stock!
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