What is a Stock Split?

Companies like to play with the price of their stocks sometimes. Here’s why and what you should know about share splits

Ruth Saldanha 25 August, 2020 | 9:09AM

Eggs split multiple

Tech giants Apple (AAPL) and Tesla (TSLA) both recently announced stock splits. Apple announced a four-for-one split, while Tesla announced a five-for-one split. What does that mean?

What is a Share Split?

Exactly what it sounds like. One share gets divided, or split, into multiple shares. Don’t worry, though. The value of your holdings is the same, it's now just in smaller chunks. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Apple Inc107.93 USD-3.47
Tesla Inc383.59 USD-9.58

About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor, Morningstar.ca

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