Stock Split Result To Lower Price Of Apple Shares

Stock Split Result To Lower Price Of Apple Shares

Following the 7-for-1 stock split, the price of Apple shares started at $92.96 when trading began on Monday. Last Friday, the price was still at $645.57, before the stock split took effect.

The company revealed that it wanted to provide investors an extra number of shares for each Apple share they owned. With the split, share prices were lower compared to last week, however, it also increased the number of shares investors can trade.

Although price of Apple shares was lower than $100, investors may not opt to sell their stocks after the split. If the shares were split last Friday, it would have a price of $92.22, which indicates the company enjoyed an increase in share prices.

The 7-for-1 stock split is part of the effort of the company in meeting the demands of existing investors. It was also aimed at attracting new investors to the company. After Tim Cook assumed the CEO role at Apple, the company increased the dividend it gave to its shareholders. The company also announced its share repurchase program and the stock split.

The shares of the company went through a stock split three times before, in 1987, 2000 and 2005. The stock splits were made after the price of Apple shares surpassed the $100 level.

Although the late Steve Jobs said that no split would be made on shares of the company, Cook was friendlier to investors. In addition to the stock split, around $66 billion was spent by the company for its capital return program. Cook said that the company is still in the position of having the capability or return considerable capital to its shareholders.

Even as sales of the iPads and iPhones of the company continue, the demand has gradually slowed down. Samsung has been the biggest rival of the company in the market as the Korean company increased its share in traditional market strongholds of Apple.

Apple has yet to release a revolutionary product since the iPad was introduced in 2010. Despite these developments, the price of Apple shares still closed one percent higher following regular trading at the Nasdaq.

Posted by James Fried on Wednesday June 11 2014, 5:13 AM EDT. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0