Apple announces four-for-one stock split
Apple's Board of Directors approves stock split
Apple on Thursday announced in its fiscal third-quarter earnings that the Board of Directors has approved a four-for-one stock split. This marks the fifth time that Apple has split its stock in its history.
What does this mean for investors?
A stock split is a corporate action in which a company divides its existing shares into a larger number of shares. This does not affect the total value of the company, but it does make the shares more affordable for investors.
For example, if you own 100 shares of Apple stock that are currently trading at $400 per share, you will own 400 shares of Apple stock after the stock split, each of which will be trading at $100 per share.
When will the stock split take place?
The stock split will take place on August 31, 2020. Shareholders of record as of August 24, 2020 will be eligible to receive the additional shares.
Conclusion
Apple's stock split is a positive sign for investors. It shows that the company is confident in its future and that it is committed to rewarding its shareholders. Investors who are considering buying Apple stock may want to consider doing so before the stock split takes place, as the shares are likely to become more expensive after the split.
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