I've been wondering this with the recent announcement of TSLA 1-to-5 stock split. So, here's what I understand:
If no new stockholders next week would be eligible for the stock split, does this mean that the stock value will begin dropping come Monday 24-Aug, since people won't be dying to get in before the split anymore? Wouldn't this make it silly for folks to keep buying stock at the currently insane $2k price?
Also, how will Tesla/NYSE monitor who had the stock when? What's to stop me from selling my stock on Monday 24th and how will Tesla/NYSE know not to split that stock on the 31st for the owner that owns it all next week if I had owned it this entire week?
- Anyone holding TSLA stock end of day 21st is eligible for 1-to-5 split
- Stock splits on 31st of August
- Clearly this is driving up the stock value as we head into Friday the 21st
- But then there is a gap-week (Mon, 24th to Fri, 28th) before the stock is actually split
- And during this gap-week, there is no incentive (for those looking to get in pre-split; mostly the ones driving up the value) to buy the TSLA stock
If no new stockholders next week would be eligible for the stock split, does this mean that the stock value will begin dropping come Monday 24-Aug, since people won't be dying to get in before the split anymore? Wouldn't this make it silly for folks to keep buying stock at the currently insane $2k price?
Also, how will Tesla/NYSE monitor who had the stock when? What's to stop me from selling my stock on Monday 24th and how will Tesla/NYSE know not to split that stock on the 31st for the owner that owns it all next week if I had owned it this entire week?