Fractional trading is the latest way for brokerage firms to attract new clients. It seems to me this will suck the wind out of corporate initiated stock splits. What are your thoughts on this?
I had thrown this one out a few days ago hoping for insights that never came, in anticipation of Tsla's split which was announced yesterday. Seems to me that fractional trading is a boon to brokerage houses yet does a disservice to those companies wishing to use stock splits in their strategy. I hope that in the case of Tesla, the announced 5 to 1 split will 1. Speed up its inclusion in the S&P 500 and 2. Encourage fractional buyers to buy whole shares and thus increase value. Thoughts?
Closing at 1835 yesterday, I'd say the split announcement has done far more than I had expected, and no S&P confirmation yet, and battery day is still 3 weeks away! Watch for Tsla to break 2k soon...