Apple’s Stock Split And WWDC
April 28, 2014
Last week, Apple announced a rare stock split. Interestingly enough, “the record date” for the split just so happens to be the same day the company begins its annual Worldwide Developers Conference (WWDC).
Does this mean anything significant? It’s time to find out.
Monday, June 2 is “the record date” for the 7-for-1 stock split. This is also the day WWDC begins with the company’s annual keynote address, when new products and services are announced.
This coincidence may sound like a big deal. In reality, it really isn’t.
A stock split’s record date determines which shareholders are entitled to receive additional shares due to the split. However, this isn't some sort of cut-off date as far as buying new shares go. Those who buy Apple stock between June 3 and June 6 will do so at the pre-split price and would also receive additional shares resulting from the stock split.
The bottom line: Whatever Apple stock you may own before the end of business on Friday, June 6 will be split on the following Monday.
For more on Apple's stock split, click here.
About the stock split
The stock split announced by Apple last week is only the fourth such occurrence in the history of the company and the first since 2005. The previous were 2-for-1 stock splits. This time around, the stock is splitting on a 7-for-1 basis. So what does this mean? If you own Apple stock at the close of business on Friday, June 6, your assets will split. For example, if you own 100 shares of AAPL on June 6, you’ll own 700 shares on Monday, June 9, the next day of trading. Apple’s stock is currently trading at around $582 per share. Being an optimist, we’ll assume the stock reaches $600 per share by the end of the day on June 6. Under this scenario, those who own 100 shares of Apple on June 6, own stock valued at $60,000, or $600 multiplied by 100. At the beginning of trading on June 9, the Apple stock would still be valued at $60,000. In this case, you’d own 700 shares valued at around $85.71 each.WWDC
Monday, June 2 is “the record date” for the 7-for-1 stock split. This is also the day WWDC begins with the company’s annual keynote address, when new products and services are announced.
This coincidence may sound like a big deal. In reality, it really isn’t.
A stock split’s record date determines which shareholders are entitled to receive additional shares due to the split. However, this isn't some sort of cut-off date as far as buying new shares go. Those who buy Apple stock between June 3 and June 6 will do so at the pre-split price and would also receive additional shares resulting from the stock split.
The bottom line: Whatever Apple stock you may own before the end of business on Friday, June 6 will be split on the following Monday.
For more on Apple's stock split, click here.
