Apple announced Thursday in its third-quarter tax earnings that the Board of Directors approved a four-for-one stock split.
That means that for every Apple share owned by an investor, they will receive three additional shares. It also makes individual shares in Apple more affordable for investors to buy. It follows a similar move that Apple made in 2014, when it offered a 7-to-1 stock split. At the time, Apple was trading above $ 600 a share. The division brought Apple’s shares to around $ 92 a share.
The stock divisions are cosmetic and do not fundamentally change anything about the company, other than possibly making the shares accessible to a larger number of investors due to their cheaper price.
Given that Apple’s shares are currently trading above $ 380, it means investors should expect to have the opportunity to buy back an Apple stock for around $ 100, depending on where the stock is traded in late August.
The shares will be distributed to shareholders at the close of business on August 24, and trading will begin in a split manner on August 31.
This is Apple’s fifth share division since it went public. It was also split on a 7 by 1 basis on June 9, 2014; 2 for 1 on February 28, 2005; 2 for 1 on June 21, 2000; and 2 for 1 on June 16, 1987.
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