…immediately post split, stocks can become volatile, or just trade sideways for a bit, or actually take a hit, or soar higher.
by Bob Rinear
The International Forecaster
On August 31st, Both Tesla and Apple will be splitting their stock. With TSLA it’s a 5 for 1, and with AAPL it’s a 4 for 1.
This is interesting and actually fun for a change. See, way back in the 90’s, companies split their stock a LOT. In fact, stock splits were so popular and so many people “chased” them, that we actually sold a product devoted to stock splits. It was literally a phone pager. When a split was announced, we’d send an alert to our paying subscribers, which told the company symbol, the type of split and the date.
It was enormously popular. But why? Well, that’s a good question and one I’m willing to debate. So let’s dig into the idea of a stock split. First of all, what they hell are they? A split is nothing more than this: All publicly-traded companies have a set number of shares that are outstanding. A stock split is a decision by a company’s board of directors to increase the number of shares that are outstanding by issuing more shares to current shareholders.