Apple’s stock split is over, with shareholders Friday holding four times the number of shares in the iPhone maker they had yesterday, as the company tries to make the stock “more accessible” to small investors.
Originally announced on July 30 and approved by Apple’s board of directors, the four-for-one share split will increase the number of available common shares in the company from about 12.6 billion to 50.4 billion, for the outstanding shares and the number of combined authorized shares. . The process quadruples the amount of Apple shares that each shareholder owns in the company, but without increasing its value.
Apple began recording which shareholders held shares in the company from August 24, with those who were deemed to still own shares before August 31 gaining three more shares of the company. The split itself began at close of business on August 28, while the August 31 release date marks the first session determined by the Nasdaq that Apple’s common stock will be tradable at a new price adjusted for the market. splitting.
Following the split, the value of each of the Apple shares was adjusted to a quarter of the pre-split price. For shareholders, this actually meant that there was no official change in the total value of their Apple stock once the split was completed, although that did not take into account that the price will change due to the major business event.
Shareholders who sold their Apple shares before the exit date will still have received the pre-split price of the shares, but would have transferred their right to three additional split shares at the same time. People buying shares before the closing date would pay the pre-split price and be entitled to the additional shares.
Shareholders will find their additional shares automatically deposited into their brokerage account, although this does not apply to all shareholders.
If the shareholder has a share certificate or owns shares of Computershare Trust Company, Apple’s transfer agent, the divided shares will be deposited in a book-entry position, with Computershare mailing a statement showing the number of shares held. Apple cautions that it will not issue new share certificates in this case, and shareholders do not need to return their versions, as they will be credited to a book-entry position.
The stock split is the fifth in Apple’s rankings since its IPO and follows a 2-for-1 split on May 15, 1987, June 21, 2000, and February 18, 2005. On June 6, 2014, Apple completed a 7- stock split for 1.
In pre-market trading, AAPL is worth $ 126.55, compared to $ 124.81, in before hours trading. Some stock marketers are not following the split well, they report that the stock is down more than 75% when in fact it is split adjusted upward on this day.