Tesla's Stock Split: Here's What It'll Look Like When It Happens
Tesla (NASDAQ: TSLA) jumped on the stock-splitting bandwagon recently. Following a similar move from iPhone maker Apple (NASDAQ: AAPL), Tesla decided to split its shares 5-for-1. The stock has soared in response, climbing well above $2,000 per share.
This is the first time Tesla has ever done a stock split, and so there are many shareholders who aren't familiar with what the process looks like. Fortunately, the mechanics of the split are relatively simple, but there are still some things you should understand upfront so you don't get any nasty surprises.
Tesla's press release announcing the 5-for-1 stock split included three key dates that investors should understand. Each shareholder of record as of Friday, Aug. 21, will be entitled to receive a dividend of four additional shares of common stock for every single Tesla share they own. That so-called "record date" would ordinarily be the sole determining factor in establishing who has the right to the additional stock that Tesla is issuing as a stock dividend in order to make the stock split happen.
Source Fool.com
