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Amelia Yamato Leow

Posted on 01 Aug 2020

What are your thoughts on Apple's recent stock split announcement?

Apple recently announced that they're splitting one share into 4 equal portions. People have said that this is "cosmetic" and increases the liquidity of the company, but what are thoughts from current investors and potential ones as well?

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2 answers

Discussion (2)

A stock split is generally meant to increase the liqudity of share in the market.

Theoretically, a 4 for 1 stock split means the share price will be divided by 4.

Current investors will recieve 3 additional share for each share held by the shareholder.

Potential investors (who can only buy per on a unit basis) will be elated as this means that the stock price is now cheaper .

My personal thoughts are that this will be beneficial for AAPL's share price in the long run as this lowers the barrier of entry to investors who wants to scoop up more AAPL share. This trend was seen in June 2014 when AAPL executed a 7 for 1 stock split.

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Frankie Rappaport

Frankie Rappaport

Level 16. Sage

Posted on 01 Aug 2020

Isn't it only about mathematics?

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TY Lim

TY Lim

04 Aug 2020

Wouldn’t it entice more retail investors to buy in since its becoming more affordable?

Frankie Rappaport

Frankie Rappaport

04 Aug 2020

Yes, that is true. but with a 1:4 split it is not so much cheaper as with a 1:10 split. bye!

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