On April 23rd, Apple (stock symbol: AAPL) announced to split its current stock to 7 equal parts, so generally it is called 7 to 1. (Example: Split 1 $100 bill to 2 equal $50 bills). The NET value remains the same, but it will allow the small investors or individual investors to bring forward or give a chance to buy the Apple’s stock at the lower price after the stock split.
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| Apple Stock Split |
Market research analysts consider that most stock splits are 2-to-1, sometimes 3-to-1. But Apple’s 7-to-1 split is highly unusual
Some investors predict that this could be a magic and Apple can do anything as it is a trend setter for all its peers.
Within a day of stock split announcement, Apple’s share has gained $43/share. Today’s value per share is $567.77 (up 8%) compared to yesterday’s price $524.75
It’s a move not without risks. By reducing the share price, you make it easier to buy and sell stock, which can make the share price more volatile. But Apple’s board of directors probably figures that small investors are more likely to be those with loyalty to the company rather than the big institutional investors who may take a much more short-term view
