Apple Stock Split Coming Monday: What It Means For You


Apple is conducting a stock split on Monday, finally bringing its stock price out of the stratosphere and back down to earth.

The Apple stock split will be a 7 to 1, meaning that for each share an individual investor currently holds, they will be issued seven shares of the stock.

CNN Money points out that the stock was sometimes more expensive than the introductory model of an iPad Air, which retails for $629.

“Starting on Monday, one share of Apple will go from costing close to $647.50 to about $92.50 — give or take a few iCents.”

The drop in price for Apple stock following the split will not change the financial positions of current investors, though. CNN Money points out that the amount of money invested in the world’s most valuable company would not change as a result of the stock split.

“Current shareholders will receive seven shares of Apple for each one they now own. As a result, the stock price will be one-seventh of where it is right now. It’s important to note that if you already own Apple, nothing really changes. You just have more stock at a lower price. The value of your investment — and the market value of Apple — stays the same.”

Forbes explains that the stock split comes as Apple’s stock has been hitting highs for a year-long period, though still shy of its all-time record high.

“Shares climbed 0.7% to $642.28, slightly below the $644.17 52-week high from May 30 and outpacing slim gains from the major averages. … At Wednesday’s prices Apple is a 10% rally away from topping its record high of $705.07 achieved in September 2012, but if the stock is going to challenge that level it will look a bit different. Apple shares are set to split 7-for-1 on Friday and begin trading on a split-adjusted basis June 9, making the equivalent of that record high $100.72 per share.”

The news on Apple’s stock split comes just more than a week after The Inquisitr reported that Apple had paid $3.2 billion to acquire Beats by Dre. The acquisition of a company with an already established and popular product in the marketplace was different than most moves made by the company popular for designing innovative products, such as the iPhone and iPad. The company is also the source of near-constant rumors of what is next, with the latest buzz centering around the iWatch.

But at the end of the day, the Apple stock split appears to be a good deal for all involved. Current owners of Apple stock still own the same amount of market share, while other investors can more easily invest in the company.

[Image via Flikr Creative Commons]

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