Today, the 29th of August, we executed the planned stock splits for:
- Apple’s 1:4 split.
- Tesla’s 1:5 split.
That means that for every 1 share held, in the case of Apple, you receive 3 more to achieve a total of 4 & in the case of Tesla, 4 more reaches a total of 5. Trading on 31st of August should begin on a split-adjusted basis, so we decided to do it during the weekend to leave you enough time to get yourself acquainted with the affect of the split on your positions.
Nothing changes value-wise as stock splits are always net neutral, this is merely a simple way for a company to make it's stock more affordable without negatively or positively impacting anyone. Each position will result in more shares worth less by themselves but the combined value is unchanged. It’s like slicing a pizza in 10 slices instead of 5.
The stock splits were executed exactly as expected. Every position was multiplied either by 4 or 5, depending on which stock was being held & the resulting whole share positions (1.00, 2.00, 3.00 etc.) were left open while fractional shares leftovers were closed at the post-split price.
Example (the same logic applies for Apple shares, the only difference being that the coefficient is 4 instead of 5):
- 0.2 Tesla -> split -> 0.2 * 5 = 1.00 Tesla
- 2.33* Tesla -> split -> 2.33 * 5 = 11.65 Tesla -> 0.65 is sold at Tesla’s last available pre-split price / split coefficient which equals the post-split price. 11.00 Tesla left.
*Fractional shares: the following happened in your account:
- Result (either profit or loss) was calculated using the formula Average price - Closing price and this was reflected in your History section > Transactions.
- The value of the shares was directly added to your free funds. This is not visible in your History section, yet we are working to facilitate such functionality in the future.
Here can be found a detailed explanation of how the splits will affect your AutoInvest Pie(s).
- Q: Where can I find the price at which my fractions were sold-off?
A: The fractions were sold-off at the last available trading price/split coefficient. If we look at an example with 0.5 Tesla CFD, that would be closed at $2,210.59 (can be seen in the app) / 5 (split coefficient). $2,210.59 / 5 = $442.12.
For Tesla equity that would be $2,212.29 / 5 = $442.46.
- Q: I owned a fractional Tesla share at 0.3, so wouldn't that now mean I own a share of 1.5?
A: 0.3 x 5 = 1.5. As explained above, the whole share amount (1.00) will be left open while the fractional amount (0.5) will be close at the post-split price.
- Q: Why did my share disappear?
A: If the total quantity after the split is below 1, the fractions were directly sold. More details about the calculation method you can find here.