Neil Hughes
Apple's much-anticipated 7-for-1 stock split officially went into effect with its new pricing on Monday morning, trading at $92.69 when the NASDAQ Stock Market opened at 9:30 a.m. Eastern in New York.
Existing AAPL shareholders were awarded their six additional shares after markets closed on Friday. But the open of the market on Monday represented the first time shares are being traded at the new split-adjusted price.
Apple has said it opted to split its stock in an effort to make it more accessible to a larger number of investors. Shares of Apple have trended higher since the company reported a better-than-expected 2014 second fiscal quarter, inching closer to its all-time high of just over $700 per share. Under the new price, shares would need to reach over $100 to set a record.
With the new pricing now in effect, Apple has undergone its fourth stock split since the company went public. The company previously saw 2-for-1 splits on May 15, 1987, June 21, 2000, and Feb. 18., 2005.
Those who received additional shares will not see any personal income tax consequences as a result of the split. The tax bases of each share owned after is one-seventh the amount it was before the split.
As a result of the split, the number of authorized Apple common shares has now ballooned from 1.8 billion to 12.6 billion shares. The new figures also mean that Apple's future earnings per share calculations will be divided by seven.
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27 Comments
It was funny over the weekend when my account showed the additional shares but with the closing price on Friday. I know this will change this morning but it was a fun thrill. It will take some time to adjust to the reduced share price when a 1 point rise is close to a 1% change instead of it being a 1/7% rise.
No idea why the Amsterdam Store is being displayed. A more fitting Store would be Frankfurt, as that is where the stock is in Europe. At € 67,86 BTW [IMG ALT=""]http://forums.appleinsider.com/content/type/61/id/44345/width/500/height/1000[/IMG]
And so the new era of manipulation on AAPL begins.
I think you will see Apple stock up at least to $100 a share in the next couple of days. Bear in mind that is almost a $50 increase of last weeks shares.
And so the new era of manipulation on AAPL begins.
Yes. There will be a lot of buying and selling of shares.