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.