Nasdaq-listed tech giants in favour among interactive investor customers as stock splits take effect.
With many turning to DIY investing rather than DIY on the home, it was a busy bank holiday Monday at interactive investor, with overall trades up 345% on last year’s bank holiday Monday.
Tesla, which was the most bought stock on Monday, split its stock 5-for-1 while Apple, which ranked second on the list, split its stock 4-for-1 in a move to make their share more affordable to everyday investors.
Richard Hunter, Head of Markets, interactive investor, says: “The simple idea is to make the shares more marketable, and usually with the retail investor in mind – and that certainly seems to have succeeded with ii customers.
“The stock split does nothing to the value of the company – for example, if you held 10 shares at a price of £1000, after a 100 for 1 split the price would be amended so that you might now own 1000 shares at the new price of £10 (the value of your shareholding is unchanged).
“It is therefore seen as a psychological move, helping investors get more “bang for their buck”, although nothing has changed – an investor with £10,000 to invest (in the above example) would be buying 1000 shares post-split, as opposed to just 10 shares pre-split.
“Also known as a capitalisation or scrip or bonus issue – but not to be confused with a right issue, where additional money is sought from existing investors.”
Myron Jobson, Personal Finance Campaigner, interactive investor, says:
“The August bank holiday is interesting as it is the only one that England, Wales, NI take but most of the rest of the world don’t (including Scotland) – that means many of the markets are open which is not the case for most of the other bank holidays. That also means that is quite a good one to compare year on year.”
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