What Does a Tesla 3 for 1 Stock Split Mean?

You may have heard that Tesla has done a 3-for-1 stock split. If you do not understand what that means, then this video is for you.

A stock split is a decision by a company’s board of directors to increase the number of outstanding shares by issuing more shares to current shareholders.

In this example, Tesla has decided to give its shareholders three shares for every one share of Tesla that they currently own.

Before you think that's a big come-up and tripled your money, you should know that the price per share was also reduced by 3x.

Essentially it's the same value of money. Tesla's market capitalization did not change because of a stock split.

Stock splits make it more attractive for new investors to purchase shares of the stock.

In this video, I give you a basic explanation of stock splits and show you how they work.

Видео What Does a Tesla 3 for 1 Stock Split Mean? канала June Collier