Tesla and Palo Alto Networks Announce Stock Split
Tesla Announces Stock Split
You may have heard the news that Tesla has announced a 3 for 1 split. This news was announced at the annual meeting on August 4, 2022. Trading began on a split-adjusted basis on August 25th, 2022. Often, companies choose to split their stocks to increase liquidity and to reduce the share price.
Stockholders of record on August 24, 2022 received an additional 2 shares of the stock. Also, at this time, the cost of one share of stock was reduced at the same ratio. If you held the stock at that time, you saw that you owned significantly more shares and that the share price also dropped proportionately, but the overall value should be close to the same given market fluctuation. This was not a taxable event.
Here’s an article about the split, if you’d like to learn more about it:
https://www.cnet.com/personal-finance/investing/tesla-stock-split-to-occur-august-24-after-
shareholders-approve-plan/
Palo Alto Networks Announces Stock Split
You may also have heard the news that Palo Alto Networks has announced a 3 for 1 split. This news was announced at the financial report for fiscal fourth quarter on August 23, 2022. Trading begins on a split- adjusted basis on September 14th, 2022. Often, companies choose to split their stocks to increase liquidity and to reduce the share price.
For each share of the stock owned as of September 6th 2022, holders will receive an additional 2 shares of the stock. Also, at this time, the cost of one share of stock will be reduced at the same ratio. If the split were to happen today, the stock price would go from roughly $572 per share to roughly $190 per share. After September 13th, holders will see that they own significantly more shares and that the share price has also dropped proportionately, but the overall value should be close to the same given market fluctuation. This will not be a taxable event.
Here’s an article about the split, if you’d like to learn more about it:
https://www.barrons.com/articles/palo-alto-networks-stock-split-earnings-51661201304
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