Apple, Inc to split stock 7-1 after Friday June 6 market close
Apple will complete its seven-for-one forward stock split after the market closes tomorrow, with the new post-split price reflected in trading on Monday.
Apple announced its stock split plan back in April, in conjunction with its plans to increase share buybacks and enhance its dividend payment.
While buybacks and dividends enhance the company's fundamentals and attract new interest from investors, the stock split Apple announced has no material affect on the actual value of the company's shares; the split simply multiplies the number of outstanding shares by seven and divides the value of each share by the same number, resulting in no net change in value.
Apple indicated that it elected to do a 7-1 split because, as the company noted, "we want Apple stock to be more accessible to a larger number of investors."
Splitting the stock results in smaller investors being able to more fluidly trade shares in smaller amounts, rather than selling shares that are now valued at around $645 per share. After the split, today's shares will be valued at around $92 each.
Shareholders of record will receive six additional shares after the market close on Friday, resulting in seven times their current holdings. Due to the split, Apple shares will be unavailable for extended after-hours trading on Friday June 6.
Additionally, all equity and option orders open as of the close of the market on June 6 will be canceled. Canceled orders will not be automatically re-entered.
Over the last week of WWDC, and running up to the stock split, Apple's shares have appreciated by more than $12, or around 2 percent.
Apple announced its stock split plan back in April, in conjunction with its plans to increase share buybacks and enhance its dividend payment.
While buybacks and dividends enhance the company's fundamentals and attract new interest from investors, the stock split Apple announced has no material affect on the actual value of the company's shares; the split simply multiplies the number of outstanding shares by seven and divides the value of each share by the same number, resulting in no net change in value.
Apple indicated that it elected to do a 7-1 split because, as the company noted, "we want Apple stock to be more accessible to a larger number of investors."
Splitting the stock results in smaller investors being able to more fluidly trade shares in smaller amounts, rather than selling shares that are now valued at around $645 per share. After the split, today's shares will be valued at around $92 each.
Shareholders of record will receive six additional shares after the market close on Friday, resulting in seven times their current holdings. Due to the split, Apple shares will be unavailable for extended after-hours trading on Friday June 6.
Additionally, all equity and option orders open as of the close of the market on June 6 will be canceled. Canceled orders will not be automatically re-entered.
Over the last week of WWDC, and running up to the stock split, Apple's shares have appreciated by more than $12, or around 2 percent.
Comments
The lower price will be great for my accounts that do not support dividend re-investment and fractional shares. Should end up with less cash hanging around at the bottom of the accounts.
$650 at close, anyone? $660?
I'm just glad Apple doesn't run its business like the insane stock market.
Dr. Dre buys Gisele and Tom Brady's mansion for $40M
http://pagesix.com/2014/06/05/dr-dre-buys-gisele-and-tom-bradys-mansion-for-40m/
I found out one interesting thing about the spilt that I did not know.
No Mini Options for AAPL, if the price is below $90.00
Breaking Apple news:
Dr. Dre buys Gisele and Tom Brady's mansion for $40M
http://pagesix.com/2014/06/05/dr-dre-buys-gisele-and-tom-bradys-mansion-for-40m/
After close tomorrow he'll have 7 smaller mansions for $5.71 million each.
Breaking Apple news:
Dr. Dre buys Gisele and Tom Brady's mansion for $40M
http://pagesix.com/2014/06/05/dr-dre-buys-gisele-and-tom-bradys-mansion-for-40m/
It's going to be a long commute each day to his office at Apple.
**** off with your trolls. What a pathetic, petty individual you are.
Enough with your bullyings- you've been reported.
And now you’ve been reported for spamming every single thread with completely irrelevant garbage about the Beats deal. We know you don’t like it. Shut up and keep it in the Beats threads. Is that really so hard to get?
How was that a Beats thread? Dr Dre is an Apple employee now and this a financial discussion.
And god forbid if anyone were ever to report you for going off topic or hammering on a mantra.
Even when Apple dropped below $400 and I begged friends and family to buy at that price it was still a a fairly expensive buy. Just 10 shares would have cost $4,000 back then. Of course that $4,000 investment would now be worth over $6,400 and those 10 shares would now be 70 but hindsight is always 20/20. My point is most people like to buy at least 100 at a time. This will be a lot easier to do with one share hovering around $90 to $100. This could open AAPL up to potentially tens of millions of new investors that tend to be long term types that simply were priced out at the old valuation. It will also open the door for Apple to move to the Dow.
I'm hoping Monday's stock price will then jump to $150 a share.
$650 at close, anyone? $660?
Put me down for $647-650. Post-split I think it will explode to $100 quickly because the average investor will want to pile in.
People Who are influenced by the number of shares they hold should never buy any shares! What about warren buffets Berkshire shares. Are they at $100.000 now a piece?
How was WHAT a Beats thread?
Uh huh. Sure thing, boyo. Keep it to the Beats threads.
It isn't really relevant to this discussion, as I'm certain you know. But if you really felt is was so important that you just had to include it, fine. Now drop it.
I'm giving you a warning.
Stocks are easier to buy in standard blocks such as 50 shares, 100 shares, etc. selling too.