So Tesla have just announced a 5 for 1 stock split to take place on 28th August. Does anyone know what happens with your fractions when this happens. If you have 0.2 will you get 1 whole share

[image] That was Tesla’s official statement

The use of the term ‘dividend’ is used in the official statement, found https://ir.tesla.com/news-releases/news-release-details/tesla-announces-five-one-stock-split It could be a misunderstanding on my part, but I am not sure of how the terminology will be treated for tax purposes.

surely it just wouldn’t be like a normal dividend or the current shareholder would lose out as tax needs to be paid on it right. why don’t they just do a normal stock split like everyone else, mentioning the word dividend in their statement is messing with my brain.

Thank you, I had not seen the official announcement :slight_smile:

now you can be confused along with everyone else :slight_smile:

So is it a split or is it a dividend?

I have no idea, makes no sense to me either. But wouldn’t be a cash dividend, since it will be shares, so I doubt it will be taxed.

True, but is it splitting or are they just going “hey, here’s 4x your money invested as stock dividend” cause if true… Bless Elon. Edit: yes that will never happen. But is it a split or is it a dividend?

PALO ALTO, Calif., August 11, 2020 – Tesla, Inc. (“Tesla”) announced today that the Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each stockholder of record…

ok I think I understand it now. 2 types of dividends, cash and stock. this one is a stock dividend, they are not taxed until sold by the owner. google is great. [image] What Is a Stock Dividend? A stock dividend, sometimes called a scrip dividend, is a reward to shareholders that is paid…

Tesla stock split

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Tesla stock split

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