“Apple today announced a two-for-one stock split, which will double investors’ shares held at the close of business on February 18. Trading of the newly split shares will begin 10 days later,” Jennifer LeClaire reports for MacNewsWorld. “The split comes after iPod and iTunes sales and the introduction of a mass-market, low-price Mac mini have fueled record-breaking revenues and soaring stock prices during the past year. Apple’s stock has posted a fourfold increase during the past year. Analysts said companies split stocks at certain thresholds to attract new investors who might be unwilling to purchase shares at higher prices.”
“‘Overall we are seeing better action in technology stocks today, so Apple’s announcement is set against a positive backdrop,’ Pado said. Stocks don’t split every day — and for good reason. Pado said the last thing a company would want to do is split a stock and then have it fall. Thus, Apple’s decision to split its stock would appear to demonstrate high expectation for forward progress, he said,” LeClaire reports. “‘Apple’s decision says a lot about how the board and the company’s administration feel about their future prospects,’ Pado said. ‘That’s being reflected not only in Apple’s stock, but it’s helping the tech companies in general. There is a positive feeling in the market.'”
Full article here.