UAE- Tesla woos retail investors with stock split, shares rise

Daniel Fowler
August 14, 2020

However, such a move could prompt other companies with high-price shares such as AMNZ, GOOGL, to consider such a tact, but that is not necessarily a bullish outlook for the stock market, at least from a fundamental standpoint.

Both Tesla and Apple are hot stocks among retail traders.

Tesla shares soared in premarket trading Wednesday after Elon Musk's electric car-maker announced a 5-for-1 stock split. On Thursday, the automaker's gains continued with shares rising as much as 4%, bringing the two-day total to 18%.

Tesla Inc., with its "soaring" stock, is one of the valuable companies in the world today.

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Tesla stated it was making the split, which will take the type of a dividend circulation,"to make stock ownership more accessible to employees and investors" After their newest bounce, nevertheless, the shares would still cost nearly $300 each after the split, based upon existing trading levels. Tesla said that the stock split was to "make stock ownership more accessible to employees and investors", in a press release.

Specifically, all shareholders registered by 21 August are to receive a dividend of four additional ordinary shares for each share held after the close of trading on 28 August. The split shares will begin trading at the new price on August 31, Tesla said. The S&P 500 index, which tracks 500 large United States of America listed companies, saw only 3 stock-splits in 2020, with the average being 10 every year.

Priced now at US$1,374 the stock has more than trebled this year to date and gives the electric auto-maker a market capitalisation of close to US$220bn.

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