Announcer (00:02):

I love this podcast because it crushes your dreams of getting rich quick. They actually got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern. To share Step-by-step premium investing guidance for beginners. Your path to financial freedom starts now.

Dave (00:33):

All right, Folks. Welcome to Investing for Beginners podcast. Tonight is episode 169, and Andrew and I are going to answer some listener questions. We got four great ones that we’re going to answer for you guys. So we’ll go ahead and start. So I have the first question here. Andrew, do you have a pod episode that talks about stock splits, or have you guys talked about the upcoming Apple and Tesla splits on recent pods? I may have missed it. Thanks, Joe. Andrew, what are your thoughts on that?

Andrew (01:03):

So we haven’t talked about the splits; by the time this goes live, the splits will have already happened for Apple and Tesla. It’s I, that’s a good time to talk about them, basically what a stock split is when. So if you go back to the basics of why the stock is and what the stock market’s like and what that represents with businesses, you could literally go back to the basics with our series.

Andrew (01:29):

We did on episode four, the two I believe. And we did four episodes, all covering that very, very in-depth. So I highly recommend that for beginners who are just tuning in, but essentially ownership of a business is split into all of these different shares. And so, you know, you have a certain number of shares, and then you have the price per share and that price per share, what you’re going to see on CNBC or Yahoo finance. And, you know, in the case of, you know, let’s say Apple today, they’re at 120 something to share something, something like that, right? So you have that number. You have several shares. So when a company does a stock split, what they’re doing is they’re going to split they’re splitting the price. And so what that’s doing is it’s doubling the shares. So, you know, you can do different types of stock splits.

Andrew (02:29):

Tesla’s was kind of interesting because they did a weird ratio, but for something like Apple, you could, if you own the ones, one share, they’re going to split that into two shares. Let’s say you’re going to own two shares now. And then the price of Apple went from 200 something to a hundred and something. And what that does as a shareholder, if your current shareholder that doesn’t change anything. And if you look at it on a big picture, you’re not changing the ownership percentages any differently. And so one description I saw recently kind of summed it up perfectly,