Tesla stock split

📊 Investing
146

I just bought more to round up to 16 , nice and clean.

147

I have read the same for AAPL. But I do not understand why the record date is important. It seems that one receives split shares so long as a purchase is made before Aug 28. It does not matter if the purchase is before or after the record date of 21 August. Similarly, with selling.

4 Likes
148

Yeah the record date seems irrelevant in that case.

1 Like
149

Thanks for that @Martin! :+1:

150

Thanks Martin. Well explained. Can you please clarify if that is the same case for fractional shares? If I own 0.1 share, will I receive a further 0.4 shares on the 31st August? Obviously to the same total value as before the stock split…

Thanks.

151

so far communication pointed fractionals are not going to be split. Meaning position will be sold and funds released into free funds.

1 Like
152

This is frustrating. I own my fair share of Tesla with etoro and they have told me they are definitely including tractional shares in their stock split. I’d really like some clarification direct from T212 if they will be doing the same. We can speculate all we like, but it would be nice to hear from the company itself.

Thanks.

153

Here is a this link. Staff have already explained it. If you own 10.9 then the 0.9 will be sold for cash and the 10 will be split. I figure that if you use the cash to rebuy 5 x 0.9 you may lose as much as $1. But you might gain if the price falls before you repurchase.

154

So what happens if you own 1 full share, but that’s split between a pie and non pie?

155

If you own 1 full share in total before the split - inside and outside a pie, your total quantity of shares after the split will be fractional and it will be rounded to the nearest whole number below. For example, if you have 1 full share before the split, and you have 0.5 shares after the split - the shares will be rounded to 0 and the remaining 0.5 will be paid out to you as the positions will be closed at the last available price, and your slice with the stock will be removed from the pie.

156

Wow! Why? That’s a bit unfair…

157

Thank you for your reply, just to clarify, you are only eligible for the split if you own at least one full share outside the pie? so if I own one full share outside the pie and a fractional share inside a pie. the one share is eligible for the split and the fractional share is removed and given as cash?

1 Like
158

You can be eligible for the split even by owning less than a single share outside the pie. For example, you can have 0,1 shares inside and outside your pie - total of 0,2 shares before the split.

If the split is with ratio 3-to-1, the total shares you’ll have after the split will be 0,6. We will then round the shares to 0 and the remaining quantity of 0,6 will be paid at the last available price of the stock.

1 Like
159

Wait I’m confused, so I have 0.5 shares right now. So when the stock splits it should go to 2.5 shares. So are you saying it will get rounded down to 2 shares and I will receive 0.5 worth in cash? That would be much better than it all being sold

1 Like
160

Thanks I currently own 1 share outside the pie and 0.2 inside the pie. so it makes it alot easier for the split. I’m guessing for 5 to 1 split means I get 5 shares and the 0.2x5 gets sold as cash.

161

You’re absolutely on point with yours, @CavanHaganInvesting!

This example isn’t quite as accurate, @daindian, as 0,2 * 5 is a whole number and if you have 1 share outside your pie and 0,2 inside = 1,2 total shares before the split.

Let’s say the split is 5 to 1 = 1,2 * 5 = 6 and there will be no remaining quantity. All new shares after this split are allocated in the following way.

Shares inside the pie (Total shares after the split * Split coefficient/Total quantity before split) = 0,2 * 5 /1,2 = 0,83 shares inside your pie after the stock split.

Shares outside your pie = Total shares after the split - Shares inside the pie after the split = 6 - 0,83 = 5,17

The only case where your remaining quantity will be closed at the last available price will be if the Total shares after the split were fractional (e.g. 6,2 or 6,7) Then the remaining 0,7 or 0,2 will be closed and paid out to you. :nerd_face:

3 Likes
162

Why is this not the case for Apple? At least this is what I understand from

0.2 won’t become 0.8, neither will 0.3 → 1.2

Truncating fractional part after the split is way better than truncating fractional part before the split.

Is there any difference between two stock split cases which results to this practice?

1 Like
163

This was also the case for Tesla previous, which is why I was confused. If this is the case for Resla then it’s also the case for apple

164

Must be my advancing years but must admit I’m struggling how you can end up with this ratio on a 5:1 split …

165

So what do I do with fractional shares in Tesla invest? How is the split handled? Ty