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Apple’s stock has been on a tear lately.
On the year Apple is up over 70%, recently becoming the first U.S. company with a market cap of over 2 trillion….yes, that’s trillion with a T
On July 30th, Apple (AAPL) announced a 4:1 stock split making its stock price more affordable for more investors.
The split is scheduled to take place on August 31st. But they’re not the only one. Tesla (TSLA) just a few days later on August 11th, announced a stock split also for August 31st.
TSLA is arguably the most talked-about stock this year. Their stock split will be a 5:1 split. So to kick things off, let’s first simply answer the question:
What Is A Stock Split?
Let’s look at Apple (AAPL) as an example. At the time of this article, Apple closed at $503.43/share. So for easy math let’s say you currently were holding 100 shares of Apple. The so-called “Split Date” is as of the close of the market on August 28th. At this time, whatever the current price of AAPL stock is it will be divided by 4. In doing this, your original 100 shares will now be 400 at the new price.
Make sense?
Why Would A Company (Like Apple or Tesla) Want To Split Their Stock?
Well, it’s honestly pretty simple: They want their share to be more approachable/accessible to more people. With both companies having insane runs higher this year, TSLA is currently trading at $2014.20 as of today’s close and…
