yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Tesla Stock Dividend is just a stock split


2m read
·Nov 3, 2024

Tesla shares are trading higher today after they filed something signaling a stock dividend. But what is a stock dividend? Well, it's definitely not a dividend. A stock dividend is actually just a stock split with the word "dividend" mixed in to make it sound like if investors are getting something extra when they're actually getting nothing.

If you look at the form AK they filed, all they said is they're going to go through a process to enable a stock split of the company's common stocks in the form of a stock dividend. That's all it says; nothing else. The last time I heard the term stock dividend was when I was doing research for the book and looked into what Google did with respect to their shady stock dividend in 2014.

In a normal two-for-one stock split, what you'll see is one share of stock split into two identical shares at half the value. But that's not what happened with Google. So before 2014, Google only had one type of common stock, which were A shares with voting rights. So if it's split into two, investors should have ended up with two A shares.

But what actually happened was Google introduced C shares with no voting rights. So shareholders ended up with one A share with voting rights and one C share with no voting rights, both carved out of the 1 A share with voting rights. So overall, this was actually bad for Google shareholders.

But Google still had the audacity to call that stock split a stock dividend. You can learn more about the details of Google’s shady stock split in Chapter 6 of the book, which is available for free at this moment. We don't really know what Tesla intends to do with their stock dividend, aka split, but what I can guarantee you is they are definitely not going to pay their shareholders.

More Articles

View All
RC step response - intuition
In this video, we’re going to introduce the idea of a step response. This is one of the most common occurrences in all of electronics, and it happens anytime there’s some resistance and some capacitance in series. In particular, it happens billions of tim…
Why You SHOULD NOT Buy A Home
What’s up you guys? It’s Graham here. So today we’re going to be talking about one of the most debated questions of mankind, something that philosophers have been pondering since the beginning of time. And no, it’s not what’s the meaning of life. It’s not…
Spaceship You
Pandemic season. This is not the first, nor will it be the last time you lock yourself down and we isolate from each other to protect ourselves and to protect those more vulnerable than ourselves. The practical effect of this isolation on you is that your…
RC natural response example (3 of 3)
We just derived what the current is and the voltage. These are both the natural response of the RC. Now, what I did is I went ahead and I plotted out this using a computer, just using Excel to plot out what these two expressions look like. Let me show you…
How I started selling private jets
I started when I was 23 years old, working for a jet broker in Washington DC. In those days, it was maybe six or seven jet brokers in the United States. I don’t think there were any outside the United States at the time. It was really in the beginning of …
Multiplying monomials | Algebra I | Khan Academy
All right, in this video we’re going to be multiplying monomials together. Let me give you an example of a monomial: 4 x squared. That’s a monomial. Now, why? Well, mono means one, which refers to the number of terms. So this 4x squared, this is all one t…