Apple Inc. is known for many things, and one such thing is splitting the stocks. Apple has gone through splitting their stocks five times in the entire history.
Stock Split means dividing one stock of a company into several stocks. Example, if the stock split ratio is four to 1, then one stock of the company will become four stocks.
This move can be good as well as bad. For Apple, the splits have proved to be pretty profitable. Every time the stock splits, the price of the shares increase in the future.
History of Apple’s Stock Split:
The first Apple Stock split took place in the year 1987, and the last split took place on 31st August 2020. With every split, there was a significant change in Apple stock price.
- First Split:
The first-ever Apple Stock split took place on 16th June 1987. The company went public in the year 1980. Just after seven years, the company went for the stock split. The split ratio was two to one stock. It means for every single stock; there will be another stock. One share will be divided into two shares. The volume of shares has doubled, and the price of the stock was divided by 2. The split was successful as it made the stocks cheaper and more accessible to the investors. After a year, the stock price increased by 2%. The stock price reached $79 on 31st Many1987.
- Second Split:
The second split took place on 21st June 2020. Before the split, Apple Stock Price was $111 on 31st May 2020. The split ratio was two is to 1. At that time, the stock prices were affected by a decrease in the business. However, Apple made a full recovery in the upcoming years.
- Third Split:
The third split took place on 28th February 2005. The split ratio was the same, i.e. two is to 1. Shares went from 900 million to 1.8 billion after the split. The stock prices increased by 60% in the next year. It was the most profitable split.
- Fourth Split:
The fourth split took place on 9th June 2014. The split ratio was 7 to 1. So 1 Apple share was divided into seven more shares. The price which was $700 went down to $100.
- Fifth Split:
The fifth split tool place recently on 31st August 2020. In this split, the shares were divided into a 4 to 1 ratio. One share was divided into four more. It decreased the price again. The main reason for the split was to encourage investors to invest in cheaper Apple shares.
If you prepare to buy Apple stock, you can check its balance sheet at https://www.webull.com/balance-sheet/nasdaq-aapl.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.