Apple and Tesla are splitting their shares, but does it matter?

NEW YORK (Reuters) - Shares of Apple Inc (AAPL.O) and Tesla Inc (TSLA.O) will be less costly on Monday as pre-announced stock splits take effect, in theory making them more accessible to retail investors, but as more brokers offer fractional shares, some in the market question the need.

Investors cheered the Apple and Tesla announcements, helping extend a rally in the companies’ shares, which along with many other technology firms, have soared in value as the market emerged from its pandemic-induced depths in March.

That made owning a piece of these companies seem out of reach of many Main Street investors. Apple closed at over $500 a share on Thursday, while Tesla continued its meteoric rise on Thursday to above $2,200 a share.

Both Apple and Tesla said their actions, a 4-1 and 5-1 split respectively, would let more investors access their shares.

But in the past year, online brokerages like Robinhood, Charles Schwab Corp (SCHW.N), and Fidelity, along with several smaller shops, have begun offering slices of individual shares.

“Fractional share ownership, all else equal, really does render the price of a stock irrelevant,” said Julian Emanuel, chief equity and derivatives strategist at BTIG.

That, combined with commission-free trading at most brokerages, has made it easier for anyone with a mobile device to own a piece of a company.

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