Apple announced a four for one split of Apple common stock. In short, it means that entitled shareholders will have four shares for every one piece they own.
When will it happen?
On Friday, Aug. 28 after stock markets are closed. Brokers will handle the task using their procedures.
If you have a position open on APPL.US on Friday, on Monday morning when the trading begins at 1:30 p.m. UTC you will have four times more units, each at the split-adjusted price.
SimpleFX traders should expect increased price volatility over time before and after the split.
The trading with shares on a split-adjusted basis will start on Monday, August 31, 2020.
What is a stock split?
When a company decides that the price of one share is too high, they decide to increase the number of outstanding shares. They split the shares owned by current shareholders.
Why did Apple decide to split the stock?
A stock split is done when the company leadership assumes that the stock is overpriced. Splitting it opens access to a broader base of investors. It also makes trading stocks easier, as the price of $500 per share is the lower limit for a minimum transaction.
Is this the first time Apple splits stocks?
No. Apple has been a very successful company and on Friday we’ll see the fifth stock split since the IPO.
Here’s the list of previous splits:
- May 15, 1987 – two for one;
- June 21, 2000 – two for one;
- February 18, 2005 – two for one;
- June 6, 2014 – seven for one.
What was the price of Apple during the last split in 2014?
Apple decided to make the split after the price of the stock reached $700 per share. On Friday, June 6, Apple closed trading at $645.57, and the split lowered the price to $92.44 per share.
How will the split affect the price?
Friday’s closing price of Apple stock will be divided by four. The opening price on Monday may be above or below that level. SimpleFX traders should expect an increase in Apple stock volatility before and after the split.