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Hey, I have 1,000 shares of Apple. What can I buy?

@frugalrahul

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363.5K

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Why it worked

The video uses a relatable, fast-paced skit format to simplify a complex financial concept, making it highly shareable and educational.

Summary

A creator uses a skit to illustrate the concept of stock splits by showing how the value of Apple shares has grown over time. The video humorously depicts the creator asking a financial advisor what they can afford at different stages of the company's growth.

Structure

1Introduction of the concept with year 2000 scenario
2Progression through 2005, 2015, and 2020 stock splits
3Final scenario in 2025 showing massive growth
4Closing disclaimer that the content is for entertainment only

On-screen text

Year 2000 Hey 1000 What That's like $250 a suit it'll be polyester Oh, wait Year 2005 stock split 2:1 I now have 2000 shares CAN I GET? Oh $4,000 Good gains an old car It'll be slightly used I'll think Year 2015 Apple did a 7:1 I now have 14,000 shares CAN I GET? HOLY SHIT $350,000 any car you can buy an apartment I'll come back Year 2020 Hey My shares are now worth $1 MILLION CAN I GET? A million dollars sir? a penthouse Let me take this call Year 2025 14,000 shares of Apple What can I buy? That's like $3 million that mansion right across the street But are you going to buy? Yeah, I'll just buy more Apple shares ONLY FOR ENTERTAINMENT NOT ADVICE

Original caption

Stock splits explained - Apple Stock🫪📈 Stock splits are a simple mechanism of stock market. A company can choose to split it’s $100 share into junior shares of $10 each. In such a case the ratio of 1:10 is used for stock split and the value of your holdings remains unchanged. Stock splits are used to enable a smaller share price by increasing the total shares. Reverse splits or share consolidation is another mechanism that inverts the process of stock splits. Instead of using a ratio like 1:4 or 1:10 - a ratio of 4:1 or 10:1 is used to consolidate junior shares into a larger share of higher value. Similar to stock splits, these do not affect the total value of your portfolio. This video shows the impact of a long-term investment of an early investor of Apple Inc and the impact of compound interest and stock splits. By using the mechanism of stock splits, apple inc. And similar companies can create junior and hence affordable shares which will be accessible to general public. Beginner investing