NOTE: This story was updated with fresh information June 9.
Since the Cupertino, Calif.-based tech giant announced the 7-for-1 stock split on April 23, AAPL stock has gone up 18.5%. The split-adjusted AAPL price is about $92.50.
A 7-for-1 stock split is fairly unusual, as most companies typically do a 2-for-1 or 3-for-1 split. But it appears Apple was determined to get the share price below $100.
The reason Apple Chief Executive Officer Tim Cook gave in April was that the company wanted to make AAPL stock "more affordable."
Experienced investors know that the share price is irrelevant, but Cook realizes that a lower price at least makes a stock appear more affordable.
A more likely reason for the dramatic 7-for-1 split is that Cook wanted to get the price to where AAPL could reasonably be considered for inclusion in the Dow Jones Industrial Average.
Because the Dow is price-weighted, AAPL at $600 or $700 would have distorted the index. But AAPL at $90 or $100 would fit right in with other Dow components.
While being part of the Dow doesn't affect revenue or profits, it does bestow a certain degree of prestige. And it could be that Cook feels Apple now deserves membership in that exclusive club.
So that's the "why" behind the AAPL stock split. But there are a lot of other nitty-gritty details that investors should be aware of.
What You Should Know About the Apple Stock Split
First, let's get the key dates out of the way.
- The Record Date was June 2. Investors who owned AAPL shares as of this date are entitled to receive the additional shares due to the split.
- The Split Date was June 6. The AAPL shares split after the market close.
- The Ex Date is June 9 – today. AAPL common shares start trading at the new split-adjusted price.
Here are a few other facts investors need to know…
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.