when your stock splits, pretty much nothing happens... your broker just multiplies your holding by 7 at the magic hour, and the price goes to 1/7th (and all the math on dividends, p/e, market cap... they all wash out).
This is definitely driving the liquidity of the stocks and driving the stock back into the consumer market. Them buying up stock (which on the one hand concentrated the stocks into the buy and hold group, and arguably made employees a higher percentage of ownership), and then issuing a 7:1 split... To me, the only thing this seems to do is make options plays 7X easier. (given that you have to do options at 100 share units, now you can make the play with effectively 14.3 shares)
Or is this part of Oppenheimer's grand plan on his exit? Get down from a hair less than Biilion shares down to 850Million shares, and then go to 6Billion shares. Those with the most shares wins?
I know stock splits are technically meaningless, but AAPL has been weighed down by completely meaningless negative sentiment. A psychological reset like this might just get things moving up to a reasonable valuation.
It will make it more "affordable" to buy Apple stock, and could drive up the price more as smaller investors buy in.
I hear that argument a lot, but I'm not sure if I agree with it.
If somebody couldn't afford $500 a share, then some small investor buying a few shares for $80 won't make much difference in my opinion. It's the big players that count. The small investor doesn't mean crap.
I do _NOT_ pity the poor fools who shorted APPL today before the news. "They" are all the usual whining market manipulators who try to tank the stock every quarter because they are unhappy that APPL only sold 50 million iPhones, when of course Apple should have sold 60 million according to their Wall Street Guesstimates. Let them eat their APPL 'shorts' today!
Would someone mind explaining to me what a 7-1 stock split is? What happens when you split stock? Or perhaps just point me go a useful area of the interwebs that can better explain it for me. Thanks.
Essentially you're getting 7x the shares of stock that are valued at 1/7th the per-share price. So, hypothetically, instead of having 1 share of stock that's priced at $700, you'd have 7 shares that are priced at $100.
Generally speaking, this is a good thing. It will make it more "affordable" to buy Apple stock, and could drive up the price more as smaller investors buy in. As an example based on AAPL's closing price today of $524.75, the after-split price would be $74.96. That will no doubt change a lot before June, however.
People who could not afford $524.75 shares could drive up the price by buying $74.96 shares, or their impact could be insignificant.
According to Yahoo finance, institutional ownership of AAPL is 62% today. Let's see how that changes after the split.
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
"... announced a split granting each AAPL stock owner six shares for each share owned..."
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
"... announced a split granting each AAPL stock owner six shares for each share owned..."
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
"... announced a split granting each AAPL stock owner six shares for each share owned..."
Not clear? No. Just wrong.
Clear and correct. How do you think splits are executed, if not by granting more shares to current owners?
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
"... announced a split granting each AAPL stock owner six shares for each share owned..."
Not clear? No. Just wrong.
It doesn't say you loose the one you had.
It doesn't say you have to give up your shares either in the headline... that makes it 8 for 1.
If you own 10 shares at the current stock price of $700 per share ($7,000 valuation), you will end up with 70 shares at $100 per share ($7,000 valuation). This is 7 times the number of shares for one seventh the price per share.
Would someone mind explaining to me what a 7-1 stock split is? What happens when you split stock? Or perhaps just point me go a useful area of the interwebs that can better explain it for me. Thanks.
Nothing happens particularly interesting. You get 7 times your shares at 1/7th of the price... so back to where you started.
Arguably pointless. Some people think it makes the shares more affordable, but in reality the number of people who buy single shares is a small fraction of the market.
That's the part people aren't seeing, but will sooner, rather than later.
Apple just cut the nut sack of large traders manipulating the stock by opening it up to become a rising stock once again, for small investors. The flexibility Apple will have against Google's overpriced stock and Microsoft's overly split stock to a point of being a dividend only buy will become more apparent with future acquisitions and potential new markets Apple jumps head long into with new products.
How are the dividends per share affected by this? Are they now divided by 7 once the stock splits or are the still going to pay out the $3 something per share after the split?
The dividend payout is mid-May. The stock split is in early June. The $3.29 share dividend will have already been dispersed to shareholders. If you don't have shares of AAPL at the end of day on May 12th, you don't get the upcoming dividend payout.
The next time Apple announces quarterly results, they'll say what the dividend will be. Assuming they stick with the same rate (2.5%), the new quarterly dividend would be about one-seventh of the upcoming payout. Let's say post-split AAPL is trading at $80 in mid-June; the new quarterly dividend payout would likely be around $0.50 per share.
Comments
when your stock splits, pretty much nothing happens... your broker just multiplies your holding by 7 at the magic hour, and the price goes to 1/7th (and all the math on dividends, p/e, market cap... they all wash out).
This is definitely driving the liquidity of the stocks and driving the stock back into the consumer market. Them buying up stock (which on the one hand concentrated the stocks into the buy and hold group, and arguably made employees a higher percentage of ownership), and then issuing a 7:1 split... To me, the only thing this seems to do is make options plays 7X easier. (given that you have to do options at 100 share units, now you can make the play with effectively 14.3 shares)
Or is this part of Oppenheimer's grand plan on his exit? Get down from a hair less than Biilion shares down to 850Million shares, and then go to 6Billion shares. Those with the most shares wins?
I know stock splits are technically meaningless, but AAPL has been weighed down by completely meaningless negative sentiment. A psychological reset like this might just get things moving up to a reasonable valuation.
Google is DEAD. And so is Microshaft.
It will make it more "affordable" to buy Apple stock, and could drive up the price more as smaller investors buy in.
I hear that argument a lot, but I'm not sure if I agree with it.
If somebody couldn't afford $500 a share, then some small investor buying a few shares for $80 won't make much difference in my opinion. It's the big players that count. The small investor doesn't mean crap.
People who could not afford $524.75 shares could drive up the price by buying $74.96 shares, or their impact could be insignificant.
According to Yahoo finance, institutional ownership of AAPL is 62% today. Let's see how that changes after the split.
7 for 1?
Later it says 6 for 1.
More than likely 7 for 1.
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
The higher the stock value the less crazy fluctuations in the price. I thought that's why Google and Apple did not like splitting.
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
"... announced a split granting each AAPL stock owner six shares for each share owned..."
Not clear? No. Just wrong.
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
"... announced a split granting each AAPL stock owner six shares for each share owned..."
Not clear? No. Just wrong.
Clear and correct. How do you think splits are executed, if not by granting more shares to current owners?
It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1.
"... announced a split granting each AAPL stock owner six shares for each share owned..."
Not clear? No. Just wrong.
It doesn't say you loose the one you had.
It doesn't say you have to give up your shares either in the headline... that makes it 8 for 1.
If you own 10 shares at the current stock price of $700 per share ($7,000 valuation), you will end up with 70 shares at $100 per share ($7,000 valuation). This is 7 times the number of shares for one seventh the price per share.
This is an "additional" 6 shares per share owned.
Google is DEAD. And so is Microshaft.
Um....NO.....they are not. All 3 companies will continue to exist and make money.
Would someone mind explaining to me what a 7-1 stock split is? What happens when you split stock? Or perhaps just point me go a useful area of the interwebs that can better explain it for me. Thanks.
Nothing happens particularly interesting. You get 7 times your shares at 1/7th of the price... so back to where you started.
Arguably pointless. Some people think it makes the shares more affordable, but in reality the number of people who buy single shares is a small fraction of the market.
Clear and correct. How do you think splits are executed, if not by granting more shares to current owners?
First of all, you have to actually read my comment. Then proceed from there.
The headline says: "Apple announces 7-for-1 stock split..."
The article says: "granting each AAPL stock owner six shares for each share owned..."
That is neither clear nor correct.
It should say: "granting each AAPL stock owner an additional six shares for each share owned..."
There. Clear and correct.
Google is DEAD. And so is Microshaft.
That's the part people aren't seeing, but will sooner, rather than later.
Apple just cut the nut sack of large traders manipulating the stock by opening it up to become a rising stock once again, for small investors. The flexibility Apple will have against Google's overpriced stock and Microsoft's overly split stock to a point of being a dividend only buy will become more apparent with future acquisitions and potential new markets Apple jumps head long into with new products.
How are the dividends per share affected by this? Are they now divided by 7 once the stock splits or are the still going to pay out the $3 something per share after the split?
The dividend payout is mid-May. The stock split is in early June. The $3.29 share dividend will have already been dispersed to shareholders. If you don't have shares of AAPL at the end of day on May 12th, you don't get the upcoming dividend payout.
The next time Apple announces quarterly results, they'll say what the dividend will be. Assuming they stick with the same rate (2.5%), the new quarterly dividend would be about one-seventh of the upcoming payout. Let's say post-split AAPL is trading at $80 in mid-June; the new quarterly dividend payout would likely be around $0.50 per share.