Today's big stories

Tesla announced plans to split its stock, making the electric carmaker cheaper to buy into
There's one simple way to invest in the US stock market without overexposing yourself to its five biggest firms – Read Now
The UK economy shrank by the most on record last quarter

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Tes Is More

What’s Going On Here?

Investors will soon be getting a lot more Musk for their buck: Tesla announced a “five-for-one” stock split late on Tuesday, and its existing shares rose 7% on Wednesday.

What Does This Mean?

Every share a Tesla investor owns – currently worth around $1,500 apiece – will be replaced with five shares, each worth about $300 (all else equal). That might help woo investors who’ve been put off by the price of a single share, which has more than tripled so far this year. Then again, that hasn’t exactly put off many people so far: last month, nearly 40,000 traders who use Robinhood’s investing app bought Tesla shares in one four-hour window (tweet this).

Existing shareholders like them don’t need to do anything: their holdings will be updated at the end of the month. And since the electric carmaker will also update its per-share metrics, investors should easily be able to compare its past profits to future earnings.

Why Should I Care?

For markets: Anything Apple can do...
Apple announced a “four-for-one” stock split last month, perhaps in part because it was hoping its share price would jump if investors could buy in more easily. Since then – and even before the split’s happened – Apple’s stock has risen so far it’s reclaimed its moniker as the world’s most valuable public company. Tesla – already the world’s most valuable car company – might be looking for a similar effect by winning over investors who bought its upstart rivals’ cheaper shares instead.

For you personally: Investors love a good meeting.
Some online stock brokerages already let you buy fractional shares and get in on any dividends the company pays. But a fractional share doesn’t give you other rights that come with holding complete shares, like attending annual meetings and voting on company policies. That can be a dealbreaker for “institutional” investors – which is partly why lowering the price of a whole share is such a big deal.

Dig deeper: How stock splits like Apple’s will affect you.

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2/3 Premium

What Goes Up…

What’s Going On Here?

For the first time in fifty years, the top five firms on the US stock market are worth as much as the bottom 350 – and there’s one simple way you can help protect yourself if they have a bumpy landing.

Get the full story with Finimize Premium

🍷 Great nights, better mornings

Look, 2020’s been a toughie. No one deserves a beer, or a gin, or a cheeky glass of wine more than you. And with H-PROOF, you won’t regret it the next day.

H-PROOF is the vitamin for when you drink. It was created by a doctor who hit upon the perfect combination of vitamins, liver detoxifiers, immunity boosters, and electrolytes to help boost your alcohol metabolism and reduce the toxins in your system.

It’s all to do with the enzymes created by the two very tasty cherry chews: they turn alcohol into harmless substances and fill you to the brim with loads of positive nutrients. Put simply, you’ll feel a whole lot better than you normally do.

Cheers to that: try H-PROOF today.

Try H-PROOF

3/3

Smashed It

What’s Going On Here?

No, really: the UK economy revealed its biggest ever economic shrinkage on Wednesday, with the economy over 20% smaller in the second quarter than in the first.

What Does This Mean?

The UK kicked off the year with 2.2% shrinkage in its first quarter, and now a second quarter of negative growth has made it official: the country’s in its first recession in 11 years. And boy did it happen in spectacular fashion, with the UK suffering the worst second quarter of any major economy. It shrank by nearly 60%, compared to the US’s 33% and the eurozone’s roughly 36%. That’s a helpful comparison, but there are limits to the figures: they’re “annualized”, which means they assume the second quarter’s drop versus the first will continue for the next three quarters. And that – touch wood – won’t happen.

Why Should I Care?

For markets: In deep Brit.
Economic data for April, May, and June that’s released in August isn’t particularly useful for investors, especially when the writing – mostly four-letter words – has been on the wall for months. So they’re not likely to have done much to their portfolios in response to Wednesday’s release. And while the UK’s key stock market index did rise, it probably had nothing to do with the data: it predominantly features global firms, after all. But what might worry economists are the decade-high job losses that could hint at weak third and fourth quarters – a high that retail chain Debenhams sent even higher this week.

The bigger picture: Ready, aim…
The Bank of England said just last week that it’s ready to do more to support the UK economy, including cutting interest rates to encourage more spending and stimulate growth – and it might now be manning the battle stations. It’s still got Brexit on its plate too, which means it might be forced to act sooner rather than later to combat its negative economic effects.

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💬 Quote of the day

“We can evade reality, but we cannot evade the consequences of evading reality.”

– Ayn Rand (a Russian-American writer and philosopher)

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🤔 Q&A · RE: Duck Knows

“Why do fewer buyers and sellers lead to bigger rises and falls in asset values?”

– Michelle in Malaysia

“Investors who want to buy an asset – let’s say a stock – tell the exchange how much they’re willing to pay, and sellers tell the exchange how much they want for it. The exchange then matches bids with offers and the trades are made. If, say, multiple investors want to sell at once and there aren’t enough buyers, a share price tends to drop dramatically until it’s low enough to attract a buyer. A market with a good number of active buyers and sellers is said to offer ‘liquidity’, which reduces the likelihood of big and sudden price moves.”

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🌎 Finimize Community

🏡 Home sweet home

Buying your own place ain’t easy, not least because no one ever tells you how it all works. Saturday’s UK event walks you through the entire process – from how to secure yourself a mortgage to which whimsical doormat to buy when you move in.

🇬🇧 UK: The Pathway to Homeownership – 5.30pm UK Time, August 15th
🇭🇰 Hong Kong: The Rise of Young China – 9pm Hong Kong Time, August 18th
🇦🇪 UAE: Is The Worst Over For Oil? – 5pm Dubai Time, August 20th
🇬🇧 UK: Create your Financial Fitness Plan – 2.30pm UK Time, August 26th
🇩🇪 Germany: The Rise of Sustainable Investment – 11am Berlin Time, August 27th
🇬🇧 UK: Build Your Own Investment Portfolio – 11am UK Time, August 28th

📚 What we're reading

Six smart pandemic pivots (Inc.)
The new normal: constant backsweat (Wired)
Uganda goes green (Soft Power News)

Finimize - 💸 Extra Tesla shares for you

Today's big stories

Tes Is More

What’s Going On Here?

What Does This Mean?

Why Should I Care?

What Goes Up…

🍷 Great nights, better mornings

Smashed It

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🏡 Home sweet home

Older messages

👑 Aramco loses its crown

🚫 America puts WeChat on notice

🎉 New Events: Fashion’s New Style, The Racial Wealth Gap, & The Pathway to Homeownership

💉 Investors don't want a coronavirus cure

💥 BMW crashes, burns

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