Apple Stock Splits: A History of Wealth Creation for Shareholders
Introduction
Apple's history of stock splits has played a pivotal role in the company's success and in creating wealth for its shareholders. By splitting its stock, Apple has made it more affordable for investors to own a piece of the company and has also increased the liquidity of its shares.
Stock Split History
Apple has split its stock six times since its initial public offering (IPO) in 1980. The most recent stock split occurred on August 31, 2020, with a ratio of four-for-one. This means that for every share of Apple stock owned, investors received three additional shares.
The following table shows Apple's stock split history:
| Date | Ratio | | --- | --- | | June 16, 1987 | 2-for-1 | | February 28, 1998 | 3-for-2 | | July 1, 1999 | 3-for-1 | | February 12, 2005 | 2-for-1 | | February 28, 2007 | 2-for-1 | | August 31, 2020 | 4-for-1 |Impact on Shareholders
Stock splits have a number of benefits for shareholders. First, they make it more affordable for investors to own a piece of the company. For example, if Apple's stock price was $100 before the stock split, it would be $25 after the split. This makes it more accessible for investors to buy Apple stock.
Second, stock splits increase the liquidity of the stock. This means that it is easier to buy and sell Apple stock, which can be beneficial for investors who want to quickly sell their shares.
Third, stock splits can help to boost the stock price. This is because stock splits can create a sense of momentum and optimism among investors, which can lead to increased buying pressure.
Conclusion
Apple's history of stock splits has played a major role in the company's success and in creating wealth for its shareholders. Stock splits have made it more affordable for investors to own a piece of the company, increased the liquidity of the stock, and helped to boost the stock price.
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