Apple Stock Splits and Market Impact

Apple's stock splits have had a significant impact on the market, with each split increasing the number of shares outstanding. This has led to a decrease in the stock's price, making it more accessible to individual investors.

The first split occurred in 1987, when Apple's stock price was around $20. After the split, the stock price dropped to around $5, making it more affordable for investors. This split was a 2-for-1 ratio, meaning that every one share became two.

Apple has since split its stock four more times, with the most recent split occurring in 2020. The 4-for-1 ratio split reduced the stock price from around $380 to around $95.

Apple has split its stock five times throughout its 44-year history as a publicly traded company. The most recent split was 4-for-1 in 2020.

Here's a breakdown of Apple's stock split history:

If you had purchased just one share of Apple at its IPO in 1980, you would hold 224 shares today, and with today's stock price of approximately $224 per share, one share purchased on the first day of trading would be worth $50,176.

Apple's history is a fascinating story of innovation and growth. The company has been publicly traded for 44 years, with its first IPO in 1980.

Apple has split its stock five times throughout its history, starting with a 2-for-1 split in 1987. This split increased the number of shares each shareholder owned, reducing the per-share price and attracting more retail investors.

Here's a brief overview of Apple's stock split history:

If you had purchased just one share of Apple at its IPO in 1980, you would now hold 224 shares.

Apple recently announced a 4-for-1 stock split, making its shares more affordable for investors.

The split will be distributed to shareholders at the close of business on August 24, and trading will begin on a split-adjusted basis on August 31.

This is Apple's fifth stock split since it went public, with previous splits occurring in 1987, 2000, 2005, and 2014.

The split means that for each share of Apple stock that an investor owns, they'll receive three additional shares.

The share price will be quartered, making single shares in Apple more accessible to a larger number of investors.

Apple's previous stock splits were a 7-to-1 split in 2014, a 2-for-1 split in 2005, a 2-for-1 split in 2000, and a 2-for-1 split in 1987.

Here's a breakdown of Apple's recent stock splits:

The new stock price is expected to be around $100, depending on where the stock trades at the end of August.

Apple stock splits have a significant impact on the stock market. A split can increase the liquidity of the stock, making it more attractive to investors.

The stock price of Apple has historically increased after a split, with the price more than doubling in the year following each split since 2000. For example, the stock price rose from $1.38 to $3.63 in the year after the 2-for-1 split in 2000.

The increased trading volume and investor interest can also boost the stock's market capitalization, making it a more valuable company.

The Dow Jones Index is a price-weighted index, which means that the price of each stock in the index has a direct impact on its overall value.

A company with a higher stock price will have more influence on the index, making its share price fluctuations more significant.

Currently, Apple has the highest stock price in the Dow, accounting for about 10% of the index's value before the split.

After the split, Apple's influence will greatly diminish, falling to the bottom half of the index with a weighting of around 3%.

The impact on the S&P 500 Index is determined by a company's market capitalization. A company's market cap is calculated by multiplying the number of shares outstanding by the price of each share.

This calculation is then used to determine the company's weighted average in the index. The larger the market cap, the more impact each 1% change in the stock price will have on the index.

Apple's market cap is a significant contributor to the S&P 500, making up about 6.7% of the index as of July 31, 2020. This means that a change in Apple's stock price will have a notable effect on the overall index.

Since Apple's market cap doesn't change with a stock split, there is no immediate impact on the S&P 500.

Tesla's recent 5-for-1 stock split has made its shares more affordable to small investors, dropping to $442.68. This is a significant move for the electric-car maker, which has seen its stock jump 435% this year.

The split is expected to give retail investors who couldn't afford shares at previous levels a chance to buy at lower prices. History shows that big-name brands typically see their share price rally soon after a split.

According to eToro data, the 10 biggest global brands that have carried out a stock split over the past 60 years have seen their share price rise by an average of 33% over the next 12 months. This includes Apple, which has split four times before.

Apple's shares saw a 58% boost in the 12 months following a February 2005 split, but fell 61% in the wake of a June 2000 split.

Apple's stock split in August 2020 was a 4-for-1 split, meaning that for each share of AAPL held, you would receive three additional shares.

The split was for shareholders of record on August 24, 2020, and the shares would undergo the split after the market closes on August 28, 2020.

The new share price of AAPL would be quartered, so if the stock price was $400, it would trade at $100. Your total investment would still be $4,000 if you owned ten shares.

There are no tax implications for this activity, and your proportionate ownership in Apple would not change.

Here's a simplified example to clarify the split: if you own ten shares of AAPL on August 24, 2020, and the stock price is $400, you would receive 30 additional shares, making your total 40 shares, but the new stock price would be $100.

Apple's Board of Directors approved the four-for-one stock split in its fiscal third-quarter earnings, which means that investors should expect to buy a share of Apple for around $100, depending on where the stock trades at the end of August.

This is Apple's fifth stock split since it went public, and it follows a similar move Apple made in 2014, when it offered a 7-to-1 stock split.

Stock splits are cosmetic and do not fundamentally change anything about the company, other than possibly making the shares accessible to a larger number of investors because of their cheaper price.

Here's a list of Apple's stock splits:

Tesla's stock split was a 5-for-1 split, which means each shareholder received five additional shares for every share held.

The stock split didn't make Tesla any cheaper overall, but it gave smaller investors a chance to buy shares at lower prices.

After the split, Tesla's stock price dropped to $442.68, but history suggests that big-name brands like Tesla typically see their share price rally soon after a split.

The 10 biggest global brands that have carried out a stock split over the past 60 years have seen their share price rise by an average of 33% over the next 12 months.

In the case of Tesla, its stock price jumped 435% this year before the split, and it's likely to continue its upward trend.

Here's a comparison of Apple and Tesla's stock prices after their respective splits:

Matt Maley, a chief market strategist, notes that stock splits often cause stocks to rally, even if it doesn't make economic sense.

The discounts from stock splits don't last long, but they can give smaller investors a chance to buy shares at lower prices.