1.4.5 Reverse/split

Stock-split and Reverse


The popular electric car manufacturer Tesla split both its share price and ownership in five. Its previous sky-high share price of 2,230 USD went to a more accessible price of 446 USD. Stockholders who previously held just one share now own five. Despite the stock split, Tesla is still worth the same. 

The Tech giant Apple had the Stock-Split on August 31. The split was a 4-1 so the price and ownership were split in 4. So, if you owned one share of Apple with a value of approximately 500 USD, today you would own 4 shares with a price of 125 USD per share.

According to world-famous value investor Warren Buffett, stock split will create a more speculative view towards the stock price.