Tesla stock split

All good here. Glad to know that the only thing sold was the 0.0x part of the stock and not the 0.x part of it.

For future i suggest having it recorded more accurately on the platform, like how much I had, what happened, and how much i have now. Im sure you will figure it out

Thanks!

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The only thing that tells you that is the number of shares. If there are 100 shares then each share represents one-hundredth of the company, regardless of their price.

In the case of Tesla, you said that there were 186 million shares before the split and 931 million shares after the split (although 186 million x 5 = 930 million so these are rough figures).

Therefore, before the split each share was worth a 186 millionth of the company and after the split each share is worth a 930 millionth of the company. The price is completely irrelevant.

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That isn’t accurate. For example, 0.1 pre-split shares would’ve been sold.

I had all of my AAPL stock in a pie. Can see the number of shares increase, and the fractional part was sold off with the funds appearing in the pie.

My question is will the cash be auto-invested in the pie (as i have that option turned on)? I would prefer to instead use it to re-buy fractional shares in AAPL again.

4 x 3 = 12

12 is the result. You can’t just change the result to 13 without changing the 4 or the 3 to something else.

In the case of Tesla’s market capitalisation, you get:

Pre-Split - 186.36 million shares x $2210 = $411.8556 billion (approximately)
Post-Split - 931.8 million shares x $442 = $411.8556 billion (approximately)

You can’t change that figure of 411.8556 billion without changing either the number of shares or the price. For the purposes of this discussion, the number of shares is a constant and the share price is determined by the order book only.

Thats what i got though. And I’m happy with it. Only the 0.0x part was sold

Afternoon all! Been reading through the thread pre and post split and I couldn’t find a definitive answer.

I had approx. 0.06 (around £100 end of trading) of a share so I assumed it would be x5 during split, and due to Trading212s approach, be sold and placed in my account as deposited funds. It appears I only have the 0.06 worth of share price as available funds.

Is that correct? So I’ve effectively had no benefit from the split and just had my fractional share sold on my behalf (due to broker approach)?

Thanks @David.

What’s happening with the share price feed? In INVEST & ISA, the pre-split prices are still being shown.

However, in CFD, Apple is showing the post-split price, but Tesla is still showing the pre-split price.

Can you confirm the pre and post-split buy & sell prices for both Apple and Tesla and the exchange rate that was used to calculate the sale proceeds?

Nobody got any “benefit” from the split. In your case:

Pre-Split - 0.06 x $2,210.59 = $132.6354 as shares
Post-Split - 0.3 x $442.118 = $132.6354 as cash

Assuming an exchange rate of 1.3352, that is £99.33747753145596.

If share price is determined by the order book, then why did the price change last night?

Absolutely, all of these are true:

Number of Shares * Share Price = Market Capitalisation
Market Capitalisation = Number of Shares * Share Price
Share Price = Market Capitalisation / Number of Shares
Number of Shares = Market Capitalisation / Share Price

But what you said was:

That is how you calculate the Share Price if you know the Market Capitalisation and the Number of Shares. It is not how a share derives its value/price.

You can’t change the Share Price by changing the Market Capitalisation any more than you can change the Number of Shares.

The Market Capitalisation is the result of a calculation. It isn’t an independent value that can be manipulated directly.

Do you mean when it was divided by 5?

Number of shares changes all the time. It’s called buybacks and splits, reverse splits etc…

Employee stock options also

Okay, maybe we’re arguing semantics.

If I had 1 share of Tesla, I’d have 5 now? That is benefitting in the share split.

If I was with a different broker, with my 0.06 I’d now have 0.3 of a share now. That’s benefitting from a share split as I own larger stake.

It’s irrelevant of the value to be honest, I was using that to understand what’s happened. But it appears on face value that I don’t have any stake now in Tesla, haven’t had an increase in fractional ownership, or increase in cash (as if I had 0.3 and then been cashed out) so therefore my only hope is my payout is equal to or more than 0.3 of a share to profit come Tuesday.

No you wouldn’t have a larger stake. That’s the point.

That’s why I said this:

Not really, because each share would be worth one-fifth as much.

You wouldn’t own a larger stake (either financially or in terms of your percentage ownership of Tesla) because there are now 5 times as many shares and they’re worth one-fifth as much.

In terms of value, you should be exactly the same pre and post-split. That’s the same for absolutely everybody. However, in your case, you have no Tesla shares left. Whether that’s good or bad is entirely dependent on what happens to the Tesla share price in the future, whether you buy back in and at what price.

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So you do understand it’s all the same?

Is that directed at me? If so, what do you mean? I’ve never said otherwise.

Okay, thanks for the clarification!

I suppose the gain on the share split is a long term gamble of it climbing up in value again. Guess a theoretical 1x £2200 Vs 5 x £2200 is always better if you gain shares from a split and then return to previous value.

Still very much learning so I’ll reinvest and see what happens.