Apple Stock Split Explained (AAPL)

The stock market world, and financial gurus have been in a tizzy since the Apple stock split was announced a few days ago. People have been flocking to the blogs, and apps like Robinhood trying to decide if they should buy Apple stock before the split. Of course this is a common occurrence whenever a big change is announced in the stock market. 

The truth is the Apple stock split isn't as historical as people are making it out to be. This is going to be Apple's fifth stock split since going public. Fun fact, Apple started trading at nineteen cents when they first launched their IPO. Needless to say if you were investing at that time, you are quite wealthy right now. 

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Apple Stock Split (AAPL): Should You Buy?

Should You Buy Apple Stock Before The Split

Here's some quick math to help you decide. If you have one share of Apple right now which is currently trading at about 400 dollars a share. In fact, right now it is trading for over $420, but we'll keep the numbers nice and even for math purposes. So you have one share for $400 dollars. After the split, you will now have 4 shares. Each of those shares will be worth $100 dollars, making your dollar amount even to what it was prior to the split. 

So those of you who are wondering whether they should sell their current shares and buy the "cheaper" shares after the split... the answer is: NO. Selling the shares now and buying them after the split is an extra mathematical step that you do not need to take. Why? Because you shares are going to split anyway. 

Why Is Apple Splitting:

Apple hasn't come out and stated exactly why they are doing the split but there are tons of speculative reasons floating around the stock market world. The biggest one is that Apple is trying to stay balanced with the other stocks in its sector, as well as being more consumer friendly. People are more willing and able to spend $100 on a share versus $400 on one share. 

To get further information and more details on the ins and outs of the split, watch the full video below explain the Apple Stock split. 

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