Stocktwits on Stock Splits 💡
In light of Tesla’s 3-for-1 stock split this week, let’s review all things stock split.
For those who may need a quick refresher, there are two types of stock splits: conventional and reverse. A conventional stock split, such as Tesla’s 3-for-1, increases the number of shares available in the market by splitting each single share by 3, making each post-split share worth â…“ of its value before the split. A reverse split does just the opposite. After a reverse stock split, 1 share of the company post-split is worth 3 shares before the split.