The split of Apple and Tesla shares does not fundamentally affect the value, but it is a marketing ploy. This was announced by Douglas Bonapart, a certified financial planner, founder, and president of Bone FIDE Wealth in New York, CNBC reported on August 31.
Companies usually say they are dividing their shares to make them available to more people.
He noted, вЂњThis was done as a marketing tool to get small investors to invest in stocks.вЂќ The expert added: вЂњIn fact, the mechanics of the company are the same.вЂќ
He believes that people want to understand what this event means for personal gain. вЂњThe answer is nothing,вЂќ the expert concluded.
Bonapart stressed that many brokerage firms, such as Fidelity and Charles Schwab, allow people to buy portions of the stock, known as fractional stocks, showing that вЂњsplitting stocks means absolutely nothing. Even before the split, US investors could buy Tesla or Apple shares for $5 or $10
Recall that earlier in August, the total value of Apple shares exceeded $2 trillion. Tesla is valued at more than $400 billion.
On August 31, the split of shares of Apple and Tesla was completed. Apple divides each of its shares by four and Tesla by five.