The History of Apple Stock Splits
The history of Apple's stock splits is an interesting one. Not only did the company first split its shares in June 1987, but it also did it again in February 2005 and in May 2011, a year after the last split.
If you own a share of Apple stock, it may seem like you are sitting on top of the world. This is because of the company's stock price, which has surged 220,000% since its initial public offering (IPO) in 1980. The tech giant has survived tumultuous times since its IPO. During the dot-com bubble burst, its shares halved. At the time, Apple's stock was valued at $40 to $80. After the dot-com crash, Apple's share price started to recover. However, it was still down from the previous year. As a result, it decided to split its shares.
Apple's decision was to make its shares more accessible to a wider base of investors. Since then, the company has split its stock four times. The stock splits were accompanied by an increase in the price of the shares. In the first split, two “new” shares were issued for every old share. That allowed the company to retain its price ceiling, while making the stock more affordable for new
and existing investors.
The second stock split occurred in 2000. Rather than allowing the price of the shares to continue to go up, Apple decided to split it again. This time, the company issued a seven-for-one stock split. It took shares from $700 to $100. A larger ratio was chosen because a larger number of new shares was needed to get back to the lower prices.
Although the company's performance after the stock splits isn't perfect, it does show that Apple is resilient. There are several factors that determine whether or not a company is resilient. Most importantly, the company's business performance is the primary factor. Its core business has been very profitable. Moreover, the company has increased its dividend.
With the stock splits, Apple has given its retail investors a chance to invest in the company and its products. Unlike other stocks, Apple's stock price has not been driven by short-term upticks. Nevertheless, the price of Apple's shares has grown by more than 20% a year.
Apple isn't the only company to consider stock splits. Several publicly-traded technology stocks, such as Google's parent Alphabet and Shopify, have also chosen to divide their shares.
Apple's second stock split occurred on 28 February 2005
A stock split is a way of dividing shares of a company into more shares. This can be a way of attracting smaller investors to a stock. In addition, it can also make a stock more accessible to a wider group of investors. Apple is one of the most famous companies in the world. It has a wide range of products including iPods, iPhones, and iPads. However, it has faced a number of difficult times in its first two decades as a publicly traded company.
For a long time, Apple's stock was a fairly small piece of the market, compared to competitors. The dot-com bubble burst in 2000, which caused the value of its shares to plunge. But since then, it has recovered to near $1 trillion. There are some investors who want to see another stock split in Apple. They think that this would allow the company to attract fresh money and boost its performance.
While there's no reason to rush into buying lower-priced shares, a stock split could lead to some fresh buying. Some people also believe that Apple's current share price is not as good as it could be. Analysts have said that Apple's P/E ratio is relatively high. At the same time, some say that the company has done very well.
In a recent study, Bespoke Investment Group noted that the majority of stocks in the Standard & Poor's 500 index outperformed the index over a one-year period. If you owned a single share of Apple in 1980, you would own 56 shares by 2020. Apple's stock has been on a tear this year. Since the split announcement, it has risen more than 30%. As a result, it is now trading at just over $400 per share. That's almost quadrupled its value from last year.
When it comes to the future, there are a lot of things to look forward to at Apple. For example, the company will be the first in the United States to reach a $2 trillion market cap. It is also worth noting that Apple will soon be the second largest company in the Dow Jones Industrial Average. To put this into context, the Dow is a price-weighted average of 30 stocks from key economic sectors.
Apple's fourth stock split took place on 3 March 1998
It's been more than 20 years since Apple's first stock split. During that time, its share price has tripled and its market cap has doubled. Now, the company's market capitalization stands at $2.6 trillion. When Apple first went public in 1980, the company's stock was worth just $1.8 billion. It wasn't until five years later that it became the first US company to reach a market cap of $2 trillion.
Since that time, the company has had four more stock splits. The first was a two-for one split in June 1987, which increased the number of shares outstanding to 900 million. At the time, the company's share price was around $700. However, the dotcom bubble burst in 1999 and the value of the company's stock dropped by more than 88%. Shortly after the split, the price of its shares fell to less than $6 apiece.
After the dotcom bubble, Apple began to recover. In 2000, it experienced a sales dip. Eventually, its stock price doubled. By December 31, 2000, the price had reached $500 per share. During the dotcom bubble, many companies did stock splits. They wanted to increase the number of shares available to new investors. As a result, they could lower their nominal share price, thereby attracting more buyers.
Despite this, Apple's share price didn't do well in the short term after each of its stock splits. For example, its fourth stock split took place in June 2014. Before that, the company's stock was trading for about $85. The four-for-one division decreased the value of the new shares by about one-quarter. While that's not good, it didn't really hurt the company. Instead, it helped Apple attract more buyers, particularly smaller investors.
As of today, the company's stock is trading at around $405. But this is a much different price than it was before the stock split. Despite its strong business performance, Apple's share price is still not the best indicator of its future. Until the stock price starts to move higher, it may be a good idea to wait for another stock split. Overall, Apple's stock is up about 70% this year, and it's not far from its high points.
Apple's fifth stock split took place on 10 May 2011
A stock split is an event in which a company divides its shares between investors. This is done to make the shares more accessible to new investors. In addition, the number of shares in circulation is increased. Hence, the share price is lowered. The first Apple stock split happened in 1987. At that time, Apple's share price was $22 per share. Since then, the shares have split five times.
In 2005, Apple's third stock split was announced. The result was an increase in the amount of common shares from 900 million to 1.8 billion. For each share that a person owned, he or she was given three additional shares. Last week, the company declared a $0.82 per share dividend. It will be deposited into a shareholder's account automatically. The next monthly statement will show the amount that will be paid.
Apple stock has experienced a strong performance over the past year. In December, the company became the first publicly listed company in the United States to exceed $1 trillion in market value. The company has risen almost 70% in the last year. This is a good sign for the future of the company. However, the recent splits have not had a corresponding rally in the price of the shares.
Although the price of the stock is not as impressive as it used to be, it is still far from the high points. But the company has managed to recover from the dot-com bust. Despite the downturn, the company has seen strong growth in sales and profitability. Apple has a looming presence in each of its five markets. The company has a variety of products, including a Mac computer, iPad, iPhone, iPod portable music player, and accessories. These products are expected to drive the company's sales.
Another big advantage of the stock split is that it brings the price of the shares closer to the average price of other Dow Jones Industrial Average stocks. This means that more small investors will be able to purchase the shares for less. While the Apple stock split is not a defining moment in the company's history, it is a good sign that the company has performed well. Moreover, the company may decide to do another stock split if share prices continue to rise.
Olga Steiner
https://financeworld.io/!!!Trading Signals And Hedge Fund Asset Management Expert!!! --- Olga is an expert in the financial market, the stock market, and she also advises businessmen on all financial issues.