Stock split (TSLA, AAPL)

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21

so it doesn’t matter when you buy before the Ex Date, you won’t miss out on the split? Seems logical but also not :smiley: this is from ir.tesla.com:
“Each 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.”.

this to me reads that if you buy between Aug 22 and Aug 30, the shares you purchased during that time won’t be split and you miss out on that…

22

With Tesla’s price already close to $2000 ($600 increase since the split announcement), I keep wondering if this will really be worth it.

23

what do you mean Renato? what will not be worth it?

24

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.

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25

Exactly. And it still has the question of the price too high for an entry.

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26

I mean with a P/E of just under 1,000 there’s an argument to be made for saying it’s overpriced regardless of entry :wink:

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27

At least it has a P/E now I guess :rofl:

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28

Louis explained well to what I was trying to say. I mean it was the same reasoning.

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29

Bumping up the thread as it is a matter of days now and many clients must have open positions. Can we get an official statement, please?

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30

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?

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31

I see the point, but also I don’t. $400 is still much better than $2000 isn’t it? :slight_smile: so I think it’s still “worth it” as it doesn’t cost anyone anything, but it might incentivise more buying.

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32

Screenshot_20200818-171544
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33

You beat me to it, Adam!

A similar message is on the way for Tesla shareholders.

As promised, there is the update :grinning:

You can read the full story on stock splits here.

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34

Remember, you’re 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),… Also potential new developments like an upcoming September 22nd Battery day announcement… 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 ‘expensive’ 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.

*CAPITAL AT RISK

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35

Good question.

36

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?

37

I became famous in this article :rofl: Now I know what it means. Thanks

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38

‘Fear not Renato’ :joy: new catchphrase

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39

FT commented on Twitter that every stock purchased before 31/08 would be subject to split whereas Tesla’s official statement says ‘for each shareholder of record on Aug. 21´

Who is right?

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41

OMG :rofl: