Zoom stock split11/11/2022 ![]() ![]() Tesla made their announcement on, the day before Tesla closed at $1,374.39. At the time of this writing (Monday, 08/17) the stock was trading at $458.43 an increase of ~19%. Apple made their announcement on when their price per share closed at $384.76. Each of their announcements have been followed by a significant rise in share price. In less than two weeks time, we’ve heard about two hot stocks announcing their decision for a stock split Apple (AAPL) and Tesla (TSLA). This means that I can figure out how many outstanding shares there are since we know market capitalization = outstanding shares x stock price. The market capitalization of Zoom (ZM) is 75.082B and the price per share is $266.15. Market capitalization is almost always displayed when you look up a stock. My market capitalization was $220 before and after the stock split of FFP. Think of your own ownership of a stock as your personal market capitalization. Why does that matter? Because the market capitalization does not change simply due to a stock split. Market capitalization is a calculation that takes the total number of outstanding shares multiplied by the price per share of a company. You cannot define a stock split without also defining what market capitalization is. It is believed that the cheaper a stock is, the more liquid it becomes, and the more available that stock is to trade. Liquidity in this sense means the accessibility for a stock to be either bought or sold. ![]() Again, my total value of Fyooz Financial Planning stock did not change.Ī stock split is dividing a company's current share count into multiple to create more liquidity. Now that I have 20 shares, my price per share goes from $22/share to $11/share for a total value of $220. After the split, my total value does not change. Prior to the split, I had $220 of Fyooz stock (10 shares x $22/share = $220). Yay! More Fyooz stock, right?! Yes, more shares, but not more total value.Īlong with a stock share count, the price of the shares also gets adjusted. After the split, my share count goes from 10 to 20. For example, if I owned 10 Fyooz Financial Planning (FFP) shares, and issued a 2:1 stock split, I would get 2 shares for every one share of FFP that I own. In this blog, I’m going to educate you about what they are, why they’ve made the news, and what to do now that Apple and Tesla made their recent stock split announcement.Ī stock split is simply when a company divides their shares, based on a ratio of their choosing, causing there to be more shares available at a reduced price. Surprisingly, these are all terms I learned in my Investment Securities course, and terms that can appear in the financial headlines. ![]()
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