Apple’s Stock Split
No doubt in connection to Apple’s amazingly strong earnings, the company’s stock price also broke through the $400 ceiling in market trading, a 5% rise that landed it at around $406.
It’s actually a meteoric rise considering that Apple’s stock had dropped to $224 in late March over uncertainty from the global pandemic, but it’s been rising steadily ever since as Apple continues to report strong numbers across the board.
As a result of the higher stock price, Apple has also announced a 4-for-1 stock split that will be occurring later in August. This quadruples the number of individual shares that investors are holding in order to drop the price of a single share to a quarter of its original value — essentially like making change to get more smaller bills rather than fewer large ones. What it effectively does, however, is lower the bar for potential investors, since you’ll once again be able to buy a single share of Apple stock for around $100.
It’s actually the fifth time Apple’s stock has been split, with the biggest one — a 7-for-1 split — occurring in 2014. All of these splits combined mean that an investor who had bought one share of Apple stock back in 1986 for $0.58 would now own 224 shares at an approximate value of $22,400.