Cloudy with a Chance of RIBs, Part 2

When taking stock of recent financial market behavior, such as 4:1 & 5:1 stock splits “allegedly” serving as catalyst for the continued ascent of Robinhood darlings Apple Inc. and Tesla, Inc. common equity, one can’t help but feel as if 2020 may have opened a portal to Fantasy Land.

After all, the laws of accounting do make it abundantly clear that there is no fundamental change to the value of a company upon executing a stock split. However, such moves do appear to have consequences when it comes to influencing the composition of the Dow Jones Industrial Average.