Dan Raju | Co-Founder and CEO | Tradier The way retail investo
Dan Raju | Co-Founder and CEO | Tradier
The way retail investors reacted to the Apple (AAPL) and Tesla (TSLA) stock splits gives everyone a sneak peek into the euphoric state of investor sentiment that is at play in the market today. The way in which investors traded these securities is nothing short of a frenzy. It is easy for us to look at investor reaction to these splits in isolation, but what happened also has roots to what has been brewing over months. I think we may have to take a few steps back to Q4 last year to understand the buildup to this.
It started out with the announcements of commission-free trading in Q4 2019. The news drew tremendous interest from retail investors. This was followed by the rapid acquisition of TD Ameritrade and E*Trade. Then Covid-19 changed everything starting March 2020. Overnight the country had a home working, online workforce with time and money in their hands. The 24/7 news cycles of market volatility and bumpy markets totally eclipsed retail investors. Even normal market events were looked at by retail investors…