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Apple Stock Splits: A Timeline and Analysis

A Look at Apple's History of Stock Splits

Since its initial public offering (IPO) in 1980, Apple Inc. has undergone six stock splits. These splits have played a significant role in the company's growth and have benefited shareholders in numerous ways.

June 16, 1987: 2-for-1 Stock Split

The first Apple stock split occurred on June 16, 1987, with a ratio of 2-for-1. This means that for every one share of Apple stock owned, shareholders received two shares. The split was implemented to make the stock more accessible to a wider range of investors.

July 6, 1998: 2-for-1 Stock Split

The second stock split occurred on July 6, 1998, again with a ratio of 2-for-1. This split further increased the liquidity of Apple stock and lowered its price per share, making it even more attractive to individual investors.

June 28, 2000: 2-for-1 Stock Split

Apple's third stock split took place on June 28, 2000, with a ratio of 2-for-1. This split came amidst the dot-com bubble and was driven by the company's rapidly rising stock price. The split allowed investors to participate in the company's growth without having to pay a prohibitively high price per share.

February 28, 2005: 2-for-1 Stock Split

The fourth stock split occurred on February 28, 2005, again with a ratio of 2-for-1. By this time, Apple had become a major player in the technology industry, and the stock split helped to maintain its affordability for investors.

June 9, 2014: 7-for-1 Stock Split

The fifth Apple stock split occurred on June 9, 2014, with a ratio of 7-for-1. This was the company's first stock split in almost a decade and was the result of its rapidly rising stock price. The split once again made Apple stock more accessible to investors.

August 31, 2020: 4-for-1 Stock Split

Most recently, Apple announced a 4-for-1 stock split on August 31, 2020. This split was approved by the company's Board of Directors and will occur on August 24, 2020. The split is intended to make Apple stock more accessible to a broader range of investors and to increase its liquidity.

Stock Splits and Shareholder Wealth

Stock splits have a significant impact on shareholder wealth. By increasing the number of shares outstanding, splits make it easier for investors to buy and sell Apple stock. This increased liquidity can lead to higher trading volumes and a more efficient market. Additionally, stock splits can make it more difficult for large investors to manipulate the stock price, benefiting all shareholders.

Conclusion

Apple's stock splits have played a crucial role in the company's growth and have created significant wealth for shareholders. By making Apple stock more accessible to a wider range of investors, splits have helped to distribute the company's ownership and ensure its long-term success. As Apple continues to innovate and expand, it is likely that future stock splits will continue to be a key part of its strategy to create value for its shareholders.

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