What you need to know
- Apple has announced a 4-for-1 stock split for investors.
- Current shareholders as of August 24 will receive three additional shares.
- Post-split trading begins on August 31.
As part of its massive Q3 2020 earnings announcement, Apple has announced a 4-for-1 stock split. This split will see current shareholders as of August 24, 2020, receive three additional shares of Apple stock for every one share they already have.
Split-adjusted trading of Apple's stock will begin on August 31.
Apple says that this move is to make the stock more accessible to a larger pool of investors. From Apple:
The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020, will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.
As noted by Bloomberg, this is the fifth stock split in the company's history, with the most recent taking place in 2014. Apple's shares have shot up past $400 a share after reporting strong Q3 2020 results.
Apple reported a stronger than expected third quarter for 2020. The company saw a revenue of $59.7 billion, substantial increases year-over-year in sales of Macs, iPads, and wearables, while iPhone sales saw a negligible increase.
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