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Tesla Inc. (TSLA) recently announced a 5-for-1 stock split. The split takes effect on August 31 for each shareholder of record on August 21.

So, what happens to people that buy shares of Tesla after the 21st? Do they not get the 5-for-1 split? I am interested in learning about this process but have not come across what happens to shareholders after the date of record for the split.

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Forget about the corporate dating details.

If you pay the pre-split price for the shares, you participate in the split. It's as simple as that.

No one gets screwed in a stock split because position value is unchanged by it. There's no way to game the system. If that could be done, everyone would be shorting the shares at the pre-split price and selling 5 times as many shares at that price post split.

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  • The second sentence really is a great explanation.
    – Fattie
    Aug 26 '20 at 17:26
  • Some times, simpler is better :->) Sep 11 '20 at 20:50

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