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Tesla 5-1 Stock Split

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Re: Tesla 5-1 Stock Split

#21

Post by teruakohatu »

sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

> I don't want to debate it

Kind of sounds like you do want to debate it. I have no idea if it is or is it a it overvalued but plenty of people do share you view, and they lost a lot of money betting against Musk.

Re: Tesla 5-1 Stock Split

#22

Post by the-dude »

sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

You are not alone. Regular (non-tech) stock market analysts are comparing current valuations with the dot-com bubble.

But there is no TINA ( https://www.investopedia.com/terms/t/tina-there-no-alternati... ).

The money needs to go somewhere.

Re: Tesla 5-1 Stock Split

#23

Post by xenihn »

sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

I'm a bit bitter that I sold my five shares at break-even in March after having been down for a year. But then I just think of all the people who sold more shares after holding it for far longer right before the insane growth.

Re: Tesla 5-1 Stock Split

#24

Post by quickthrowman »

Xcelerate wrote: post #2

I don’t really understand stock splits. Is the only point to allow people to buy shares who could previously not buy because one share was too expensive? If so, why not just introduce fractional shares into the stock market with some fixed point number of decimal places? Or just keep track of ownership fraction (e.g. 0.0043% of the company)?

To entice retail investors to dump money in, brokered by Robinhood, one share at a time (in TSLAs case)

I’m on the fence about TSLA, their value is based on their perceived lead on autonomous driving, which is questionable. Their accounting practices are a bit shady as well. I’m not looking forward to it’s inclusion to the S&P 500.

Re: Tesla 5-1 Stock Split

#25

Post by sfblah »

teruakohatu wrote: post #21
sfblah wrote: post #12

Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…

> I don't want to debate it Kind of sounds like you do want to debate it. I have no idea if it is or is it a it overvalued but plenty of people do share you view, and they lost a lot of money betting against Musk.

No I really, really, really don't want to debate it. I'm not kidding. And I have no position either way and never will. I'm just an observer.

Re: Tesla 5-1 Stock Split

#26

Post by chrishas35 »

abfan1127 wrote: post #13
StickyRibbs wrote: post #6

Earlier quoted context omitted.

Stock splits can also be used for companies with values too low (A reverse split) . These companies split to increase the value of stocks in order to prevent delisting from exchanges.

wouldn't a split lower the value of the share price, making it closer to a "penny stock"?

It's commonly called a reverse split.

Re: Tesla 5-1 Stock Split

#28

Post by Areading314 »

gzu wrote: post #14

Speaking of splits, I love how Apple’s stock split justification is: “We want Apple stock to be more accessible to a broader base of investors.” https://investor.apple.com/faq/default.aspx Yet it’s one of the top stocks held on Robinhood (#3 at 700,000 users) https://www.robintrack.net/symbol/AAPL

It's probably one of the top stocks held on any platform

Re: Tesla 5-1 Stock Split

#29

Post by [deleted] »

Xcelerate wrote: post #2

I don’t really understand stock splits. Is the only point to allow people to buy shares who could previously not buy because one share was too expensive? If so, why not just introduce fractional shares into the stock market with some fixed point number of decimal places? Or just keep track of ownership fraction (e.g. 0.0043% of the company)?

[deleted]

Re: Tesla 5-1 Stock Split

#30

Post by [deleted] »

oh_sigh wrote: post #16
mehrdada wrote: post #8

Earlier quoted context omitted.

One thing it can impact is derivatives trading. A standard option contract controls 100 shares, which can be quite a large amount of $ if each individual share is priced highly (likewise affects the effective granularity of the common option strike prices in the market) Update: For something like TSLA which may have some psychological "Bitcoin-like" speculation going on among retail investors, I suppose the big numbe…

Is there any reason beyond legacy that option contracts come in 100 share bundles?

[deleted]
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