A stock split could make the paper more attractive, especially for small investors.
(Photo: dpa)
austin Tech billionaire Elon Musk’s company announced on Friday after the US market close that its board of directors would approve a 3-for-1 split if shareholders approve it at its annual meeting in August. Tesla had already announced in March that it was planning a split. So far it was unclear in which relationship.
Stock splits don’t actually change a company’s market value, but they do lower the price per share. The papers can thus become more attractive, especially for small investors, even if many brokers already offer to buy shares proportionately. Nevertheless, the measure is very popular with companies: other large US corporations such as Google’s parent company Alphabet and Amazon have already announced stock splits this year.