How the Tesla 5 to 1 stock split works.
In: Economics
At first you have one Tesla Stock that is currently worth 1300$.
After the August 27 you will have 5 Stocks that are combined worth 1300$.
So after that one Stock is worth 260$.
Tesla is mainly doing that, because the burden of entry for buying a single Stock is extremely high if it costs 1300$ but 260$ is much more manageable and that way they have more potential investors.
Especially on sites like Robinhood this split will boost the amount of people that are willing to buy a Tesla stock.
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