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Tesla and Apple Stocks Surge After Splits Become Effective

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Are Investors Blindly Following Logic Behind Surge in Tech Stocks?
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If luring a broader constituency of mom-and-pop investors to their shares was the motive behind the stock splits by Apple Inc. and Tesla Inc., it’s working. At least going by first-day returns.

Already plumped up by giant rallies in 2020, both stocks popped again Monday, supassing record highs after the corporate actions took effect. While splits change neither a company’s underlying economics or the intrinsic value of their shares, investors took them as occasion to do what they have almost always done this year -- buy -- adding more than $100 billion combined to their market values.