Apple stock split 4 to 1 on August 31, 2020. That means for every 1 share of stock you owned, you now have 4. As another example, if you had 10 shares last week, you have 40 shares today.
This also means that the stock price was cut into 25%. The stock price closed at almost $500 on Friday. Let’s round up for even numbers. Today, after the stock split, the share is $125 each. Your total value is still $500.
Apple and Tesla both had stock splits today. Tesla’s stock split 5 to 1. Apple’s new share price, about $125, means that smaller investors, like myself, can afford to buy stocks at $125. I had less than $200 of cash available in my Roth IRA account today so I bought 1 share of Apple stock. My brokerage company does not charge any trading fees, so why not? Apple is a great company and pretty solid as far as cash on hand. So, this is the reason why I bought 1 share of Apple stock… because I could afford it.
The hope is that small investors and individuals can now buy stock and become part owners of the company. The hope is that the stock price will continue to climb. This is also not the first time Apple stock has split.
If you bought Apple shares today, then congratulations!
As a disclaimer, I am not a financial advisor, stock broker, lawyer, or accountant. I am simply providing educational knowledge on stock splits. I do own almost 100 shares of Apple stock (post split).