Shares of Apple stock open at $92.69 as 7-for-1 split takes effectApple'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.
On Topic: Investor
- Apple bought back $56 billion worth of its own stock in 2014
- Apple could sell record 67M iPhones in December quarter, survey suggests
- Most money managers bungled Apple stock in 2014, missing out on huge gains
- Overwhelming iPhone 6 & 6 Plus demand continues to result in tighter supply for Apple than 2013
- Apple's blockbuster winter quarter boosted by cheap oil, dinged by strong dollar