Lessons from Apple's Stock Split History
Apple Announces Fourth Stock Split in History
Apple's recent announcement of a four-for-one stock split has sparked excitement among investors. Stock splits can be a significant event for a company and can impact its stock price and investor sentiment.
Apple's Stock Split History
Apple has a history of stock splits, with its first split occurring in 1980. The table below shows Apple's stock split history since its initial public offering:
| Date | Split Ratio |
|---|---|
| July 30, 1980 | 2-for-1 |
| June 16, 1987 | 2-for-1 |
| February 28, 2000 | 2-for-1 |
| February 28, 2005 | 2-for-1 |
| June 9, 2014 | 7-for-1 |
| July 30, 2020 | 4-for-1 |
Impact of Stock Splits
Stock splits can have various effects on a company's stock. Some potential impacts include:
- Increased Liquidity: Stock splits can increase the liquidity of a stock, making it easier for investors to buy and sell shares.
- Lower Share Price: A stock split lowers the share price, making it more affordable for smaller investors to purchase.
- Psychological Impact: Stock splits can create a positive psychological impact on investors, as they perceive the stock as being more accessible and less expensive.
- No Intrinsic Value Change: It's important to note that stock splits do not change the intrinsic value of a company. The total market capitalization remains the same before and after a split.
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