General Question

Aster's avatar

How much per share will Apple be after the 4 for 1 stock split on Aug 30?

Asked by Aster (20023points) August 24th, 2020

I hope it won’t be less than $500 a share? $400? lol

Observing members: 0 Composing members: 0

11 Answers

gorillapaws's avatar

If anyone could tell you the answer to this with certainty, they’d be a multi-millionaire on Aug 31. It is certainly possible for the stock to split and then decrease in share price below the split value (I have no idea what it’s going to do).

johnpowell's avatar

Historically, there is a slight bump. But the 30th could be a down day.

But now that most companies offer fractional shares the bump could be irrelevant since you can dump 50$ into a share of Apple if you wanted to right now. Minimal boost of demand. When you had to buy a full share there would be increased demand since it became more affordable to people that couldn’t swing a full share before.

But fractional shares have been free on Robinhood for at least six months so there really shouldn’t be a demand bump.

Aster's avatar

I hope it doesnt go to $300 . lol But I guess it might!

LostInParadise's avatar

@Aster , When the stock splits 4 to 1, there will be four times as many shares, so to maintain value, each share would be a quarter of its price at the time of the split.

johnpowell's avatar

Yeah. Generally you do a split to make the stock more affordable to retail investors.

It is a pizza being cut into four slices or 16. Same amount of pizza.

elbanditoroso's avatar

Well, Apple as of this morning (Aug 24) is at $500. So the split will bring it to $125.

If it goes higher before the end of the month, so much the better.

Tropical_Willie's avatar

$125 to $130 per share.

zenvelo's avatar

The value of any position in AAPL will be equivalent after the split.

AAPL split 7 for 1 in 2014. At the time the cost of a share of stock went from around $750 to $107. That is the same share that is trading $504 right now.

Aster's avatar

Well all this has been disappointing! But by now I should have known!

dabbler's avatar

I never get why anyone cares what is the price per share. How can that matter except as a psychological hurdle or other muddled thinking.
When a stock splits, the price is automatically set to the fraction of split and the number of shares goes up by the same multiplier – so that at that instant the stock is exactly the same value.

Let’s say it will be a 4:1 split and the stock is now at 500$ and you have 100 shares.
The moment after the split the share price will be 125$ and you will have 400 shares.

What the market does after that is the result of the usual mix of solid market analysis plus psychotic voodoo.

SEKA's avatar

As my boss used to say, if I could answer that question, I’d be sitting on a beach in the Bahamas sipping Pina Colodas talking to you on my cell phone with a fax machine sitting next to me. Normally when there is a stock split, that’s considered a good sign that the company is doing well and it encourages activity. Prices don’t normally drop, but with the stock market, anything can happen and that’s why there are no guarantees. Actually, I’m surprised your broker hasn’t been in touch putting in his/her 2 cents worth on what they feel you should be doing

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