Apple’s Stock Split: The Most Valuable Company In the World Takes Aim At Small Investors
Apple has long been one of the chief innovators in terms of technology. The iPhone, iPad and Macbook are just a few examples of how successful Apple has become in the world of tech. So much so that they are now the most valuable company in the world.
Unfortunately, this valuation has caused the stock price of its shares to sit well out of reach of the average small investor. As of Friday, June 6th, Apple’s stock price had climbed to just a little under $650. Granted, this is nothing compared to the most expensive stock, Warren Buffet’s Berkshire Hathaway, which is a staggering $192,705.00 per share! However, even the smaller pricetag that Apple stock currently sits at is still a bit too pricey for small investors.
The Split
Starting after the market closes on Friday, June 6th, Apple’s stock will be split at a rate of seven per one. This would reduce the price per share from the existing $647 to under $100 each. The primary driving force behind this, as presented by Apple executives, is to put their stock in range of a much wider investor pool, which could cause an even greater level of value for the company.
Why Now?
Apple’s stock has traded higher than its current worth in the past, so why split the stock now? Some analysts contend that due to upcoming releases, such as iOS 8 and OS X, as well as high-profile acquisitions, like the purchase of Beats, will all raise Apple’s profile with smaller investors. This split may also prompt the Dow Jones Industrial Average, which is the most well-known indicator of true stock value, to finally include them in their most exclusive list of the top thirty stocks.
Conclusion
Will the reduction of the stock price of the most valuable company prompt you to take the plunge and invest? Let us know in the Comments section below!