Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide feedback on the below: A stock split can be a very smart move. Their stocks are getting more attractive to new investors because

please provide feedback on the below:

A stock split can be a very smart move. Their stocks are getting more attractive to new investors because of the lowered share price. We have seen Apple's and Tesla's stock prices going up sifnificantly over the past month until the stock split. Both companies have profited from the covid crises. Tech companies are getting more and more important and are the future of our world. The tech sector has a bright future ahead and this is mirrored by the investors trust in these companies because they hope to make a lot of profit. Tesla's share price has increased to $2126. With such a high stock price, Tesla is not as attractive to smaller investors because this is a lot of money for just one share. By simply splitting the stock to 1:5, Tesla's share is availabe and more in reach to many more people, who can invest in the comoany in the future. Both Apple and Tesla were hoping to attract new inestors and increasing their value through this strategy. In addition, it is a great marketing move for both companies because they get their names out in the world and are the topic of many conversations. Immedietly, after the news came out from Apple's and Tesla's stock split, both their share price increased, as a result of a strong message to potential investors, who hope that the share will be more attractive after the split.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Business Finance

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

15th Global Edition

129227008X, 9781292270081

More Books

Students also viewed these Finance questions

Question

Why would a person fear success?

Answered: 1 week ago

Question

How can we confi rm both ourselves and others?

Answered: 1 week ago