What is a Stock Split? And Why Do Companies Split Their Shares?

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  • Опубликовано: 10 ноя 2024

Комментарии • 82

  • @Kanisha-im4of345
    @Kanisha-im4of345 8 месяцев назад +118

    Great video, I've been interested in investing ever since I came across articles of people making up to $150,000 and more in this period, thanks for the video but is it really possible for a retail investor to achieve this in months?

    • @TheresaMcgathy
      @TheresaMcgathy 8 месяцев назад

      Starting early is simply the best way of getting ahead to build wealth , investing remains a priority. I learnt from my last year's experience , I am able to build a suitable life beause I invested early ahead this time.

    • @Lucile-ru9qq23
      @Lucile-ru9qq23 8 месяцев назад

      that's quite impressive, you surely made a good bit of money. I myself invested in warren's BRK-A stock quite pricey but totally worth it.

    • @MartaBurdi5
      @MartaBurdi5 8 месяцев назад

      my 401k growth has been stagnant since the 2019. I wouldn't mind consulting the advisor who guides you, I really want to grow my retirement fund since I could retire in 3 years.

    • @TheresaMcgathy
      @TheresaMcgathy 8 месяцев назад

      STEPHANIE KOPP MEEKS! she is whom i work with look her up.

    • @MartaBurdi5
      @MartaBurdi5 8 месяцев назад

      She appears to be well-educated and well-read. I ran a Goo-gle search on her name and came across her website; thank you for sharing..

  • @akuma9940
    @akuma9940 4 года назад +39

    Who is here after Tesla announced splitting?

    • @cygnuscraft9544
      @cygnuscraft9544 4 года назад +4

      Trying to figure out if I'll be rich or broke

    • @amrithsanthosh2351
      @amrithsanthosh2351 4 года назад

      Apple split its share recently... figuring out if its a good time to invest or not

    • @Mrcccpown
      @Mrcccpown 4 года назад

      @@cygnuscraft9544 It’s a great longterm investment. Tesla is tricky to make money short term. But a Ford engineer said Tesla is ahead of every auto manufacturer by 5 years. Is FSD is released and turns out to be successful, it’ll be bank for investors. But please do research and only put in money from your own knowledge and not others. Only put in on what you can possibly expect to lose.

  • @utopia8177
    @utopia8177 5 лет назад +32

    Wow he explained perfectly

    • @MotleyFool
      @MotleyFool  5 лет назад +3

      Thanks Anthony! Most things are better explained w/ pizza.

  • @peteransel2715
    @peteransel2715 4 года назад +7

    Thanks for extremely clear explanation. You seem like way too nice and honest a person to be working in finance.

    • @timhassler2617
      @timhassler2617 4 года назад +1

      Dude..Peet how old are you.... come on

  • @smiling5683
    @smiling5683 4 года назад +1

    Excellent job explaining that!

  • @Chrissssssssssssssssssss
    @Chrissssssssssssssssssss 6 лет назад +14

    *Apple stock split really helped, from the day I turned 18 I bought AAPL :)*

    • @MotleyFool
      @MotleyFool  6 лет назад +4

      Love it! You could give it to your kids for *their* graduation.

  • @Nazarii-cf8gf
    @Nazarii-cf8gf 4 года назад +20

    *Tesla split 5:1*

  • @annskeahan7850
    @annskeahan7850 4 года назад +2

    Nice - Clear and to the point. Thanks

  • @ericwalker6477
    @ericwalker6477 4 года назад +1

    Nice job explaining. Easy to follow

  • @briang9
    @briang9 4 года назад +24

    Apple split stocks 4:1

  • @shibkhokanshib9060
    @shibkhokanshib9060 4 года назад +1

    What will be good for investors to buy the stocks after split the share or before split the share?

  • @i123456987654
    @i123456987654 4 года назад

    so that's why Berkshire Hathaway has two different types of stocks...omg thank you for explaining! totally needed that clarification

  • @fashiondina
    @fashiondina 4 года назад +1

    Loved this!!

  • @lilygovender9195
    @lilygovender9195 4 года назад +1

    Thanks from South Africa

  • @dgb5820
    @dgb5820 4 года назад +1

    Thankyou atleast I understand this part about the share market

  • @Missarlyyn
    @Missarlyyn 4 года назад

    very well explained, thank you!

  • @superbackyardbreeder1084
    @superbackyardbreeder1084 4 года назад +3

    U nailed it perfectly.

  • @Erez.Levi.Stocks
    @Erez.Levi.Stocks 4 года назад +1

    hello amigo and thanks a lot for the video
    i have one question please...
    i understand every word you say, but i don`t understand how buffat make "B" shares
    and don`t offensive the stock holders ?
    Or how Apple's split will not hurt current shareholders??
    Thanks in Advance

  • @brendalalicker4855
    @brendalalicker4855 10 месяцев назад

    Does being cash flow negative affect the company's decision to dilute?

  • @videoaks007
    @videoaks007 4 года назад +2

    What do companies gain by splitting stock or creating liquidity in the market?

  • @sidharthzambre1682
    @sidharthzambre1682 4 года назад

    Loved the video.
    Thanks man
    Ur the best

  • @marlisemason7329
    @marlisemason7329 5 лет назад +2

    If I put a STOP order in on a stock, will the stock sell if it splits?

  • @evanescence9041
    @evanescence9041 3 года назад

    well explained

  • @anniesalter352
    @anniesalter352 4 года назад +2

    Thank you for your great explanation! Go Tesla!

  • @sameerabbas2929
    @sameerabbas2929 4 года назад

    0:21 2nd one (splitted one) it gives you much utility compared to 1st one

  • @zestamore
    @zestamore 3 года назад

    What's the point of splitting stocks to make it easier to buy when you can just buy fractional shares? I definitely need to learn more about this

  • @Alpha_Marketing_Boss
    @Alpha_Marketing_Boss 4 года назад +1

    Question. I'm very new to the stock market and I bought a stock at $2.15 a week ago this morning that stock split 1 to 8 and jumped up to $17.00 a share! I got a message saying fractional shares resulting from the split will be paid as cash in 1 to 2 weeks. What does that mean?

  • @chrisvillanueva5348
    @chrisvillanueva5348 4 года назад +2

    So does this mean you get more dividends?

    • @chavvobimbo5474
      @chavvobimbo5474 3 года назад

      Don’t the dividend gets split too since it becomes fractional

  • @newslord4776
    @newslord4776 4 года назад

    Fantastic and simple video. Quick question, what would happen to my shares if a company announces a stock split like with Apple yesterday?

  • @holyfaith7
    @holyfaith7 4 года назад

    Stupid question but if my shares from.the stock split go up do that mean I increase the value of each share I have? Basically asking is per share now worth more?

  • @subbarayudukarri1116
    @subbarayudukarri1116 5 лет назад +1

    Hi is there will be any change in the financial statements when company makes stock split.

  • @rajappashama6247
    @rajappashama6247 4 года назад +1

    Dense idea demystified . Thanks

  • @user-zi8lg5qu1h
    @user-zi8lg5qu1h 3 года назад

    What does a company get from these shares, is it like selling nothing. It's like a big game where you bet on a company that it will worth more in future and that company is selling its worth as a potential for you to profit? Idk if I understood stocks correctly

  • @df6148
    @df6148 4 года назад

    Great Explanation Tony Stark. It all makes sense. You are Iron Man.

  • @ap-lt2oj
    @ap-lt2oj 3 года назад

    isn’t this solved with fractional shares?

  • @pcperambra1555
    @pcperambra1555 3 года назад

    informative

  • @gogaton
    @gogaton 4 года назад

    What about dividends? Do you get more money?. Thanks for the video

    • @MotleyFool
      @MotleyFool  4 года назад +1

      Dividends are generally adjusted to reflect the split, so you wind up making basically the same amount!

    • @jonstrande2074
      @jonstrande2074 4 года назад

      @@MotleyFool Day when you buy 1000$ for 1 share and it splits 4 each share is 250, will each share rise back up to 1000$ when the company grows and does well again and now you have 4000$?

  • @lucasforst3060
    @lucasforst3060 4 года назад

    So if one share is worth $1,500 and they do a split and now your stock is worth $300. instead of owning one share you now have 5 shares that are at $300 correct? Also if that does happen, you're saying that stock wont go back up to that price. Just to make sure im understanding this correctly

  • @Miracleplum02
    @Miracleplum02 4 года назад

    wait so when you own a split share your owning 1/5th of share or whatever they split the share into?

    • @theawasa8413
      @theawasa8413 4 года назад +1

      No, if the split is 5:1 that means your one share is growing into 5 shares but the overall total value doesn't change.

  • @thecommentator6694
    @thecommentator6694 4 года назад

    Are fractional shares not 'the norm' nowadays? I'm only young and have only recently started investing in stocks, and I use Freetrade and every investment I have is fractional. I figured it makes much more sense for people to invest this way so I assumed that was probably the popular approach.

  • @silver-back
    @silver-back Год назад

    After a stock split, could the company ever reverse it self out of a split

  • @anonymous-qy2uv
    @anonymous-qy2uv 4 года назад

    Can you give another example of companies in real life please? Like how did they deal with stock split

  • @Nunyya12345
    @Nunyya12345 4 года назад

    Still not understanding . Apple did a split . Should we sale before the split ??? Are we going to lose money since the share price will be different ??

    • @sophiaamundsen9142
      @sophiaamundsen9142 4 года назад +1

      nichole mitchell No Nichole, you'll have exactly the same amount of money. If you own one share at 400 now you'll have 4 shares at 100 each. But the more shares you have the more dividend you get so that's good. Plus if shares keep growing and they jump for example from 100 (I mean after the split) to 110 then you can add that benefit to each of you 4 100$ shares. You'd be having a gain of 40$. I think that's how it works anyway! It's a good thing, don't worry 👍👍

    • @SouthFloridaWoman
      @SouthFloridaWoman 4 года назад

      The word is Dilute. Read about diluted stocks to see if that will happen to you. Be safe. Dividends can fluctuate.

    • @Nunyya12345
      @Nunyya12345 4 года назад +1

      Thank you both . I did some more research. I think we should be fine !

    • @Nunyya12345
      @Nunyya12345 4 года назад

      I am a new trader and this is my first year investing due to COVID but I knew Apple was a good company . So this is my first year trading and expecting a stock split .

    • @sophiaamundsen9142
      @sophiaamundsen9142 4 года назад

      nichole mitchell Apple is a phenomenal company and I'm sure you'll be fine!

  • @jasontheworldisyours
    @jasontheworldisyours 5 лет назад +1

    If a company market cap grows is a stock split the only way to grow their shares outstanding?
    @Coloredspaces

  • @zvhaorik100
    @zvhaorik100 3 года назад +1

    The one split into quarters because it has more pepperoni.

  • @TKD187
    @TKD187 2 года назад

    Tesla is about to do this from what I read it's five for one

  • @kun_fu_taco4775
    @kun_fu_taco4775 4 года назад

    So nobody lost money...

  • @fishandbike
    @fishandbike 3 года назад +1

    Who's here because of nvidia today ;)

  • @TKD187
    @TKD187 2 года назад

    What if you don't have a share for example I only have $40 in Tesla because it is going crazy right now but I'm not rich so I just put $40 and I gain $3.80 just in a week I wish I had thousands of dollars to put in that stock it grew 10% and just a week you would make a lot of money if you had let's say a million you would make 100, 000 doing nothing I wish I knew somebody I could just borrow a million from and make a quick hundred thousand to give the million back

  • @olaabdull6428
    @olaabdull6428 4 года назад

    Who is here after Tesla announced splitting cos I am...

  • @o.c.2470
    @o.c.2470 2 года назад

    1:06 exactly where you lost me

  • @momo8008
    @momo8008 3 года назад

    Gme? Anyone 😂

  • @Kelsssie
    @Kelsssie 4 года назад

    This video made me subscribe! very easy to understand