Here's Why Tesla's Stock Split Isn't a Big Deal
Tesla (NASDAQ: TSLA) started the process of another stock split this week. The declaration sent shock waves through the stock market, and Tesla's shares rose 8% that day.
However, that split-based price jump should be short-lived. Investors are getting overly excited about a purely mathematical accounting trick. Nothing has changed for Tesla's long-term business prospects, and the artificial price jump should fade out in a few days.
Stock splits are pretty common. In fact, most companies go through this exercise at some point in order to keep their share prices at a manageable level. This isn't even Tesla's first rodeo.
Source Fool.com
