2 Advantages of Stock Splits for Apple and Tesla Investors
Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) have a lot in common. Both companies are innovators that have manufactured demand for their revolutionary products, and both have strong brand cachet and a loyal band of devoted followers. They also both come with high share prices, largely because of these things.
The tech giants also have something else in common: Both announced stock splits this month that will substantially lower the cost of company shares. Apple's 4-for-1 split should bring the price down from around the $500 a share mark to closer to $125. Tesla's 5-for-1 split means you could pay somewhere around $420 per share instead of the $2,100 it's currently trading at (depending on prices when the splits happen).
There's a strong argument to be made that these splits don't really matter (I know, because I made it). But there are also two big reasons to believe they will actually be a boon to investors. Here's why.
Source Fool.com
