Apple Shares Now Split 7 to 1; Here’s All You Need To Know
As of Today, June 9th, Apple’s shares will have split 7 to 1.
1. The Math Behind the Split
They will have over 6 billion shares outstanding instead of 861 million. The stock is now trading at $92.22 which corresponds to a pre-split value of $645.57. If you owned 1 share you now own 7. That simple. The dividend will also divide by 7 and remain proportional.
2. No real change in value from Stock Split
A stock split is a re-division of shares and technically has no economic change. Some stocks like Berkshire Hathaway and it’s BRK-A shares trade at over $192,895 per share have never split and others have split many times. In the end think of it as slicing pieces of a pie, the pie doesn’t change size but you can cut it in a number of ways to get a variety of different amounts of slices.
3. Potential Positive of inclusion in Dow
One potential positive is the Dow weighs stocks by stock price as opposed to by market price and Apple’s previously high price was a barrier for entry. It is possible it could now be included in Dow and that could create forcing buying for many Dow tracking funds.