During its third quarter earnings results on Thursday Apple said that the company’s Board of Directors approved a four-for-one stock split.
Stock splits are cosmetic, meaning they do not change anything about a company’s underlying fundamentals. They can lead to renewed interest from smaller investors by making the shares — which are now cheaper — more accessible. But that interest would not be enough to influence the share price more so than larger investors already freely trading the stock.
In this case, all investors who currently own the stock will receive three additional shares after the market closes on August 24. With Apple’s shares trading around $400 in the after hours, the…
Source cnbc.com