If you've ever thought about grabbing some Silicon Valley stock, this might be your chance. Shares in Apple are about to get a lot cheaper.
Apple is executing a 7-to-1 stock split after trading ends Friday, which should drop the stock price down from around $650 a share to just under $100 a share. But don't fret if you already own a piece of Apple — the stock split just means you'll end up with more shares. (Via AppleInsider, Silicon Valley Business Journal)
Essentially, the company is dividing each individual share up into seven pieces, and cutting the price of each share down by a corresponding amount. So when trading starts up on Monday, your really expensive share of Apple will have become seven slightly more affordable shares.
So why is Apple splitting their stock in the first place? Well, in the company's own words, "We want Apple stock to be more accessible to a larger number of investors." Cheaper stock prices means more potential investors after all.
The split comes at a high point for the Cupertino company. Apple stock hit a 52-week high Friday after the company announced new mobile and desktop operating systems during its annual Worldwide Developer Conference, or WWDC.
And the company's much talked-about $3 billion acquisition of Beats Electronics has been generating a lot of positive buzz for Apple.
The stock split could also help give the company a little more prestige by increasing the odds of Apple being brought into the Dow Jones Industrial Average's select group of major stocks.
CNN notes Apple has always been left out of the respected market index because its high price would have skewed the Dow out of proportion. "That won't be an issue once the stock starts trading under $100. There are already 11 companies in the Dow with triple-digit stock prices. ... It's hard to imagine Apple being left out of the Dow for much longer."
Because of the split, extended after-hours trading of Apple shares will be unavailable Friday.
