As we already wrote in our blog, Apple and Tesla recently carried out a so-called stock split - that is, their split aimed at reducing the value. In a new article, we look at how this move affected the value of the securities of the two companies.
What is a stock split
In the summer of 2020, Apple and Tesla held a stock split. This is an operation in which shares, which in the opinion of the company's management are too expensive, are split into several new securities with a lower price. This is done in order to make them more attractive to private investors.
The market capitalization of a business does not change in any way. Therefore, many companies carry out this procedure periodically - only Apple has split several times in its history.
Before the split, Apple shares were worth roughly $ 500 apiece, and Tesla shares were worth more than $ 2,200. The split of the company was carried out in a ratio of 4: 1 and 5: 1, that is, the owners of the "old" shares received in return 4 new ones in the case of Apple and 5 in the case of Tesla. For example, after the split, Apple stock is worth about $ 100.
How stocks behave after splitting
After the split, the shares of both companies continued to rise - the value of Apple securities reached $ 134 per share, and in the case of Tesla - $ 480. Subsequently, quotations fell somewhat.
Apple
shares Tesla shares
Analysts usually view the split as a positive signal for the market, as it indicates the confidence of the companies in their further growth.
What else has the split affected
In Apple's case, the split had a direct impact on the famous Dow Jones. Before the split, the Cupertino-based stock was ranked first in value among all listed companies. Now they are in 18th place in terms of influence on the index.
Also, due to the decrease in the impact on the index of companies in the technology sector, changes were made to it. Instead of Exxon Mobil (oil and gas), Pfizer (pharmaceuticals) and Raytheon Technologies (military-industrial), Salesforce (cloud services), Amgen (biotechnology) and Honeywell (military technologies) were added to the index.
In Russia, shares of Apple and other American companies can be bought on the St. Petersburg Stock Exchange... To do this, you do not need to open an account with a foreign broker, a Russian account will be enough. You can open it online .
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