TSLA 5 for 1 split - Answer from Fidelity If you hold shares of TSLA before the market opens on Aug. 31 you will own five shares for every one you held, and the stock price will be reduced to one-fifth of its value at the start of trading on Aug. 31. For example, if you hold 100 shares of TSLA trading at $1,500 per share, after the split you will own 500 shares valued at $300 per share. Likewise, if you own 1 options call controlling 100 shares with a strike price of $1,500, after the split you would own 5 contracts and control 500 shares at a $300 strike price. If you sell TSLA shares after the record dates (Aug. 21) but before Aug. 31, you will sell them at the pre-split price. You will not be entitled to the split shares. For example, if on the last business day of trading, Aug. 28, you sell 100 TSLA shares for a presplit market price of $1500 per share you will receive $150,000. You will not receive any split shares. If you buy 100 TSLA shares after the record dates but before Aug. 31, you will purchase shares at the presplit price. Following the split, you will receive the 4 additional shares resulting from the stock split for a total of 500 shares. -------------------------------------------------- 1 share of TSLA will split into 5 shares on August 31st. Whomever bought it or the date it was bought has no bearing on that. If it was a cash dividend it would matter but it is a stock split, they called it a stock dividend just because the word dividend means divided. If it were a cash dividend it would matter as to who gets the actual per share dividend. Since this is a stock dividend (stock split) the August 21st date is moot. The holder of the share at the time of the split will receive the additional 4 shares. The way to think of it, besides the link explaining the difference between a cash dividend as of date and a stock split, is if I bought 1 share on August 28th for $2000, I will still have that value after the split. I would not be stuck having 1 share for the after split price of $400. If that were the case noone will buy a single share for a week and the price would plummet.
|