When the quarterly figures were announced on Thursday evening, Apple also revealed that it would once again carry out a stock split. The Apple board has agreed on this. Most recently, Apple split the shares in 2014, at that time in a ratio of 1: 7. The now announced share split will take place on August 31, 2020, now in a ratio of 1: 4.
No change in proportions
A stock split means that the number of shares increases and the value of the individual shares decreases in the same ratio. Such a step does not change the proportion of shares held by investors. The background to a stock split is to make company shares easier to trade through lower prices.
The Apple share price is currently just under $ 385, so after the stock split, the Apple share would be trading at less than $ 100 at the current price.
Apple on the stock split
“The board of directors also approved a 4: 1 share split to make shares available to a wider investor base. Each Apple shareholder registered at close of business on August 24, 2020 will receive three additional shares for each share on the closing date is held and trading will begin on August 31, 2020 on a split adjusted basis, “Apple said on the stock split.