History Of Apple Stock Splits

Apple Stock Split History: A Detailed Guide

History of Apple Stock Splits

Apple has undergone five stock splits since 1980, with the most recent occurring on August 31st, 2020. The company's first stock split took place on June 16th, 1980, when it split its shares 2-for-1. This was followed by a 2-for-1 split on January 23rd, 1987, and a 3-for-2 split on February 28th, 2005.

Recent Apple Stock Splits

Apple's most recent stock split was a 4-for-1 split, which means that for every share of Apple stock that an investor owned before the split, they now own four shares. This split was announced on July 30th, 2020, and took effect on August 31st, 2020.

Reasons for Stock Splits

There are several reasons why companies may choose to split their stock. One reason is to make the stock more affordable for investors. When a stock is split, the price per share decreases, making it more accessible to a wider range of investors. Another reason for stock splits is to increase liquidity, which can lead to increased trading volume and a more efficient market for the stock.

Impact of Stock Splits

Stock splits can have a significant impact on the value of a company's stock. In general, a stock split will cause the price per share to decrease, but it will not affect the total value of the company. This is because the total number of shares outstanding increases proportionally to the split ratio. For example, in the case of Apple's 4-for-1 split, the price per share decreased from around $500 to around $125, but the total value of the company remained the same.

Conclusion

Apple's stock split history is a testament to the company's long-term growth and success. Stock splits can be a valuable tool for companies to use to make their stock more accessible to investors and to increase liquidity. While stock splits do not affect the total value of a company, they can have a significant impact on the price per share and can lead to increased trading volume and a more efficient market for the stock.