/biz/ - Business & Finance

>>22184554
Think of it in these terms a five year old could grasp - we, the company, are making more stocks, but we're giving you an equivalent value for the stocks you hold. Your individual stocks are now worth less, but you still have the same amount monetarily as we gave you more stocks to compensate. What does this mean? We, which includes you, the previous stock owner, can now sell more stocks at a lower price to people who have not entered the market due to the price barrier. Guess what happens when a company has been on a bullshit rally, media hype, and there's a stock split? People buy into it because now it's affordable, which means you are tricking more new stock owners into buying at a peak due to the lowered barrier of entry. Anyone with any sort of money or skin in the game knows that this is a perfect point to leave other people holding your bags.

Just a word of advice for anyone here reading: if whatever investment you have is suddenly doing a stock split and they're trending in the news, get the hell out unless you're doing some short-trade scamming with dead stocks like JC Penney. Likewise, the opposite is true for a consolidation, that means that there's going to be serious, positive movement due to a smaller pool of players, but they're far more committed and have serious investments for a long-term future.
>>22184563
TSLA has a 400b market cap for being a car company whose all-electric gimmick is already adopted by many of its competitors with minor renewable energy side-gigs. Ford has less than a tenth of that and moves more vehicle sales. Tesla is a company solely propped up by a charismatic venture capitalist with little to show otherwise, especially in a zombie economy where a ton of people are still out of work and there's moratoriums on debts and evictions en masse.