Stock Split?

Discussion in 'Apple, Inc and Tech Industry' started by Monteverdi, May 6, 2012.

  1. Monteverdi macrumors newbie

    Joined:
    May 6, 2012
    #1
    I've been fortunate enough to hold Apple stock through a couple of splits. It always seems like immediately after a split, people view the stock as a "bargain," (even though nothing changes, really) and the stock price jumps disproportionately.

    If memory serves, the previous splits happened around when the share price was around 100-140.

    So, it has been interesting to me to see Apple rise so far beyond that without a split.

    Can anyone explain to me why, at this time, Apple has chosen to keep a high share price and not split the stock? Are there reasons psychological, economical, or both? I'd always heard that a stock split benefits a company with a rapidly rising stock price.

    For example I know traditionally, Disney always kept its share price low via splits because they wanted simple family/individual investors to be able to buy a few shares. I once read that because of this, more investors had actual Disney stock certificates (which are considered "collectible") hanging on the wall than any other stock. I thought Apple had a similar philosophy, but maybe they've grown too big for that? (Disney's stock price has been relatively flat for the past 10+ years, so they haven't had a split for a while.)
     
  2. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #2
    No, only the executives can provide the full reason why they've opted not to split the stock. We can make educated guesses or explanations but its an internal decision that they made

    Here's a link as to why it may or may not be a good idea to split the stock
    http://www.fool.com/investing/general/2012/03/25/will-apples-stock-split.aspx
     
  3. Monteverdi thread starter macrumors newbie

    Joined:
    May 6, 2012
    #3
    Thanks Maflynn. I appreciate the informative link.
     
  4. sviato macrumors 68020

    sviato

    Joined:
    Oct 27, 2010
    Location:
    HR 9038 A
    #4
    One motive could be to only attract serious investors. Another could be for prestige, ala Berkshire, although AAPL isn't that high and likely won't be :p
     
  5. gr8whtd0pe macrumors 6502a

    gr8whtd0pe

    Joined:
    Feb 21, 2008
    Location:
    Belle, WV
    #5
    I have a share of Disney stock that I bought for my daughter when she was born. It's all nice and framed on the wall.

    That being said, I like my apple stock more. No matter if I can't afford anymore I'll take it over Disney anytime. The yearly .31 dividend check is a joke. I've never even cashed one.
     

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