Shares of Apple and Tesla Rose in Price after a Stock Split
OREANDA-NEWS. At the opening of trading on August 31, shares of the American corporation Apple rose by 2.5 %, to 127.92 US dollars per one share; the price of shares of the US electric vehicle company Tesla added 1.3 %, reaching 448.94 dollars per one share.
August 31 is the day of a stock split in both enterprises. A split is dividing one share into several, while their value is proportionally reduced. Companies are splitting stocks to make them accessible to investors with limited funds.
Apple split 4:1, Tesla 5:1. As a result, in absolute terms, the price of their shares fell significantly: on August 28, one Apple’s share was worth more than 500 dollars, and Tesla’s more than 2,200 dollars. However, the market capitalization of the companies did not change. For Apple, this is the fifth stock split in history since it went public in 1980; for Tesla which was founded in 2003, this is the first split.