I have recently started investing, very small amounts, hoping to grow as I learn. I have a partial apple stock through Robinhood which is set to split next week. What happens to my partial stock when that happens?
It will become 4x as many partial shares, each worth 4x less. 0% increase in overall value. Any logical increase in value will be more related to the new iPhone and 5G, self driving cars, and software contracts rather than the split itself. Having said that, the buzz about the split has and will continue to drive up price due to FOMO and "having 4x more shares". What happens after, nobody knows. Historically, Apple shares go down after splits. But in this current environment? Who knows?
Something to beware of, is sometimes the trading company will charge you for a split transaction. I had FCEL once, 200 shares. It did a reverse split of 12:1. I was left with 16 shares, and a transaction fee. Making it basically worthless. No way was it ever going to recover my losses. So the transaction fees can get you coming or going.
