Tesla Splits Shares in a 5-for-1 Exchange

Tesla Splits Shares in a 5-for-1 Exchange

Assessment

Interactive Video

Business

University

Hard

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The video discusses the impact of stock splits on retail investors, using Tesla and Apple as examples. It explains how stock splits can make shares more affordable, thus attracting more retail investors. The video highlights Tesla's significant retail interest and Apple's successful stock split, which led to a surge in share prices.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason stock splits are beneficial for smaller investors?

They increase the company's market value.

They reduce the company's debt.

They make shares more affordable.

They dilute the value of existing shares.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might a company like Tesla consider a stock split?

To reduce the number of shares available.

To decrease the company's market capitalization.

To increase the intrinsic value of the company.

To make shares more accessible to retail investors.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the number of Robinhood accounts holding Tesla shares change?

It increased from 180,000 to 550,000.

It decreased significantly.

It increased from 550,000 to 180,000.

It remained the same.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a contributing factor to the surge in Apple's stock price after the split?

A change in company leadership.

A new product launch.

A positive earnings announcement.

A decrease in market competition.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a common outcome for stocks that perform well and then split?

They face regulatory issues.

They attract more investor interest.

They become less popular.

They lose value rapidly.