so it doesnāt matter when you buy before the Ex Date, you wonāt miss out on the split? Seems logical but also not this is from ir.tesla.com:
āEach stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020.ā.
this to me reads that if you buy between Aug 22 and Aug 30, the shares you purchased during that time wonāt be split and you miss out on thatā¦
The point is that the reason for the stock split is to significantly lower the share price so that Tesla employees and small investors get a better entry.
If the price keeps elevating then by the time the split happens it will already be more expensive than they were hoping, and less of a good entry for the people mentioned above.
But my question is what happens during the 24th till 28th no one will be buying if the stock is not splitting after missing the deadline date of 21st. So it could go back down a bit?
I see the point, but also I donāt. $400 is still much better than $2000 isnāt it? so I think itās still āworth itā as it doesnāt cost anyone anything, but it might incentivise more buying.
Remember, youāre buying the company based on your own research, and foward-thinking perception of how the company may do, not based on hearsay, FOMO or any price increase.
That research may take into account known factors like an economic moat, the lack of competition, proprietry technology, market dominance, and lack of effect of geo-political or macro-environmental forces (China Trade Wars, Covid, Oil Trade Wars),ā¦ Also potential new developments like an upcoming September 22nd Battery day announcementā¦ Make your own mind up.
Look at how the stocks you hold now are performing, and weigh up the pros and cons of buying a more āexpensiveā stock. Gauge your level of risk tolerance and expectation of returns.
People pay what they think a stock is worth. When i paid $485 for it, people thought it was overpriced then.
Split or no split only you can decide - the value in the company may still be there.
Thanks for the update. Is it safe to assume that this is how Freetrade will work with stock splits in the future (splitting fractional as well), or is it not that universal and will be a case by case basis?
FT commented on Twitter that every stock purchased before 31/08 would be subject to split whereas Teslaās official statement says āfor each shareholder of record on Aug. 21Ā“
this is from ir.tesla.com:
so I think itās still āworth itā as it doesnāt cost anyone anything, but it might incentivise more buying.
new catchphrase