Apple (AAPL) announced 4-for-1 forward stock split to take effect on August 31, 2020. As of August 31, 2020, shareholders will hold 4 shares of AAPL for every 1 share previously held. As a result, Apple will adjust their price per share to accommodate the increase in the company’s shares outstanding. A forward stock split does not by itself change the total dollar value of your position, but as always the value of a company’s stock may change due to market fluctuation.
Example 4-for-1 forward stock split:
If you own 1 share of Example Company valued at $500 per share, your investment would have a total value of $500 (price per share x amount of shares held). At the time the company completes the 4-for-1 forward split, you would own 4 shares valued at $125 per share, resulting in a total value invested of $500. The total value invested remains the same regardless of the split.
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To do the calculation for your own shares, use the following equation: shares previously owned x 4 = new amount of shares held.
This corporate action affects all shareholders holding AAPL at the time of the split. Due to this event, Investing will not be accepting scheduled orders for Apple until after the forward split is fully processed. Note that after this event the stock’s historical graphs will be updated to take the split into account.
Have question and more information
If you have questions about corporate actions that affect shares you are holding, we recommend contacting the appropriate company’s investor relations team or visiting the investor relations page on their website for more information.
