Apple’s outstanding stock has risen to approximately 6 billion shares from the 860 million previously in issue. The thought process behind the split is at present unclear, despite Cook’s intimation towards broadening the appeal of the iPhone maker’s stock. Bloomberg analyst Jonathan Ferro suggests that the move could pave the way for Apple to be included in the 30 stocks of the Dow Jones Industrial Average. Prior to the split, Apple’s high share price kept it from being included in the price weighted indicator of the US economy. At $645.57 at the close on Friday evening, Apple share prices far exceeded the Dow’s most expensive component; Visa currently trades at approx. $214. However with that price obstacle now out of the way, Apple looks poised to replace either Intel or Cisco as the Dow’s main tech component.
Joe Expert
Apple completes 7-for-1 stock split; Dow Jones imminent
Apple Inc. officially completed its eagerly awaited 7-for-1 stock split on Monday; the tech giant’s first split since 2005. On publicising the split in April, CEO Tim Cook indicated that making Apple shares "more accessible to a larger number of investors” was a key factor in the decision. It means that Apple shareholders will receive an additional 6 shares for every share they currently own. Apple’s stock has gained 23% since the announcement in late April, generating more than $100 billion in shareholder wealth.
About the Author
Lorem ipsum dolor sit amet sit, consectetur adipiscing elit. Maecenas vestibulum ornare ipsum quis aliquam. Ut egestas dolor risus, sed vehicula massa molestie ullamcorper. Duis in lacinia enim. Duis congue lobortis iaculis. Phasellus tristique venenatis nisl ut ornare. Quisque congue ipsum quis magna finibus dignissim. Duis fringilla aliquet arcu, et convallis risus vulputate sed. Praesent sit amet est tempor, interdum nisi sit amet, ullamcorper felis. Etiam iaculis justo et metus mattis, eget viverra augue luctus. Suspendisse ac diam sem.