18 August 2020 20:40
New York (CNN Business) Apple and Tesla are splitting their stocks to push the per-share price lower. Could Amazon, Chipotle or Netflix be next? Amazon and Chipotle both have quadruple digit stock prices while Netflix is trading near $500 a share. The Apple and Tesla splits will soon make those stocks more affordable for average investors to purchase. Apple AAPL Tesla TSLA By completing a 4-for-1 split at the end of this month,, which currently costs about $460 a share, will trade around $115., now hovering around $1,875, will see its stock price fall to about $375 following its 5 for 1 split A stock split simply increases the number of shares outstanding, so neither company will actually lose value.
An investor who held one Tesla share will soon own five, but the total value of their holdings stays the same. Think of it like a pie. If you cut eight equally sized slices into sixteen and eat two, that's the same has having one bigger pre-cut piece. Read More