Tesla's Stock Split Was Approved. What Does That Mean for Investors?
Shareholders of the electric vehicle (EV) mogul Tesla (NASDAQ: TSLA) approved a 3-for-1 stock split at its annual meeting on Aug. 4. Although stock splits don't impact the market value of a company, they are typically looked at favorably in that a lower per-share price may open the gate for a new wave of retail investors.
For instance, if the stock split were to occur at the time of this writing, Tesla's share price would convert to roughly $291, which may be more enticing to individual investors than the $864 it currently trades at. Stock splits work without changing the value of a company because while the stock price goes down, the number of outstanding shares increases proportionately. So, in light of the recent news, should investors consider buying a stake in Tesla today?
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Source Fool.com
