Existing shareholders will own more stocks, but each of those stocks is worth less, so there is no change to the total market value of the company. While a stock split might be carried out to encourage investment, the split in itself doesn’t affect the market capitalisation of a company. Then, in 2014, share prices rose sharply and a higher split ratio was used. In the first three instances, stocks were split in two when the price was near triple figures. The company has previously split its stock four times when its shares have seen significant price increases, as highlighted in the table below. While Apple has not given an official reason for 2020’s split, it is likely that the company thinks that its high share price could deter new investors. Apple shareholders on record as of 24 August 2020 will be eligible to receive the new shares. The split has been approved by Apple’s board and is scheduled to take place on 31 August 2020. These shareholders will continue to own the same proportion of Apple stock, since the company will effectively increase the number of shares in circulation by dividing existing shares in four.

Apple’s upcoming stock split will see investors issued with four new shares for every one they currently own.

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