Earlier, Tesla, Inc. announced that he would promote the stock split plan of one split and three shares, and would pay dividends to shareholders after the close of trading on August 24th.
Shareholders registered on August 17, 2022 will receive 2 additional common shares after the close of trading on August 24, and trading will begin in the form of stock split adjustment on August 25.
What does it mean to split shares? What benefits can a stock split bring to investors?
Today, Caixue School will lead you to understand those things about the split.
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01 what is a split?
Share split, also known as split, refers to the listed company to split a share into several shares.
The proportion of split shares is unlimited, such as 1:2, 1:3, 3:4 and so on. For example, a 1:2 split means that one share is split into two and the share price is correspondingly halved.
It is important to note thatAlthough the number of shares outstanding has increased, the proportion of shares held by each shareholder remains the same, and so does the total market value of the company.
02 what will be the impact of the split on investors?
It is clear that the split will directly lead to a decline in the stock price, which may attract more investors and increase the liquidity of the stock.
On the other hand, although the split does not directly trigger the rise in the stock price, it may be considered to reflectThe company's confidence in the future。
As a result, share prices may rise as a result of the split. But...