What's This?
Image: Jeff Chiu/Associated Press
2014-06-09 13:35:33 UTC
For the first time in more than seven years, Apple's share price is trading in the double digits.
Apple's 7-for-1 stock split officially goes into effect Monday, giving each existing shareholder six additional shares for every share they hold. While Apple's market cap remains unchanged — about $550 billion — the share price went from around $650 on Friday to just more than $92 when the market opened Monday.
The Cupertino company first announced the unusual stock split when it reported earnings results in late April.
Apple has previously conducted three separate 2-for-1 stock splits, in 1987, 2000 and 2005. The company's stock has climbed by more than 20% since then on rumors of new products like an iWatch and larger iPhone as well as the stock split and an increased buyback.
By going with a 7-for-1 split, Apple significantly lowers the share price and may make it more enticing to a larger pool of investors. Some have also speculated it may remove Apple's last major barrier — a sky high stock price — to joining the Dow Jones Industrial Average.
Several finance sites were a little slow in adjusting to their data for Monday's stock split:
Here's Apple's stock trajectory, adjusted for the latest stock split:
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Topics: apple, Business, stocks
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