The Apple and Tesla Stock Split

What is a Stock split?

A stock split is a corporate action that occurs when a company decides to divide its outstanding shares into a larger or smaller number of shares.

Apple 4 for 1 Stock Split

On Aug. 31, Apple (AAPL) split its stock 4-for-1. A 4-for 1 stock means you own four shares for everyone you held, and the stock price is reduced to one-fourth of its value. For example, if you had 100 shares of AAPL trading at $400 per share, you own 400 shares priced at $100 per share after the split.

Tesla 5 for 1 Stock Split

On Aug. 31, Tesla (TSLA) split its stock 5-for-1. A 5-for 1 stock means you own five shares for everyone you held, and the stock price is reduced to one-fifth of its value. For example, if you had 100 shares of TSLA trading at $1,500 per share, you own 500 shares priced at $300 per share after the split.

If you sold AAPL or TSLA shares after the record date (Aug. 24) but before Aug. 31, you sold them at the pre-split price. You are not entitled to the split shares. If you bought AAPL or TSLA shares after the record date but before Aug. 31, you purchased shares at the pre-split price. You received the additional shares resulting from the stock split.