Tesla sets 5-1 stock split and its high-flying stock soars again

[NewsFeeder]

Tesla sets 5-1 stock split and its high-flying stock soars again

Tesla's stock, which traded at $1,475 after the announcement, is among the highest priced on Wall Street, and the Palo Alto, California-based company said in a press release it was looking to make its shares more accessible to employees and investors. Tesla's stock has surged over 200% this year, while shares of General Motors and Ford Motor declined on fallout from the coronavirus pandemic. Stock splits are a way for companies to make shares more accessible to retail investors, potentially attracting individual investors who make small trades.

https://finance.yahoo.com/news/tesla-sets-5-1-stock-020728835.html?.tsrc=rss

 

[Bullitt]

I did not know this about partial shares. Must be why when selling partial shares the sale does not occur until well into the after hours.

Commissions largely don’t exist anymore at most do-it-yourself brokerages such as Charles Schwab and TD Ameritrade Holding Corp., AMTD +0.85% eliminating that concern. Still, most institutional investors continue to prefer blocks of shares since the price often quoted on an exchange is for a round lot, Mr. Mackintosh said.

That means investors are left with three options: paying up for high-price stocks; buying shares that trade for less; or purchasing a fraction of a share, an alternative recently offered by some retail brokerages.

But fractional shares come with a caveat. Investors don’t own the actual share. Instead, the brokerage does, and investors have a right to whatever portion they agree to buy.

https://www.wsj.com/articles/stock-splits-pay-offon-the-rare-occasions-they-occur-11596274200