They’ve also announced a stock spilt - is this good or bad?
Good, you will buy more shares, but fundamental value wont change.
Holy crap just read the news on Apple 4 to 1 split! it is goooood! it means if you didnt have any Apple stocks before you could buy new at around $100 depending how it ended end of August as after hours it has risen to $400 - You get dividends per quarter, and watch it grow in the coming years! I will be investing into them again!
Some info on the stock split.
The stock split really should not affect your investment decisions. $400 = $100 x 4. Nothing has changed. With the current working of Freetrade fractional shares, it can’t make any difference, you can only buy dollar amounts.
Lowers overall price so more investors can get in = stock will go up.
All current investors get 4x the shares and can ride the growth wave back up from ~$100 a share.
Curious how will Freetrade handle the stock split?
I’m surprised they’re doing this given the availability of fractional shares, but I’m not surprised because of the amount of interest it creates. I wonder which companies will follow suit and spilt stocks.
Stock splits are now largely completely irrelevant owing to the widespread availability of fractional shares.
The stock split by Apple (whilst Amazon is happy to have shares priced at over $3,000 each) has much more to do with Apples place in the Dow Jones 30. This index is calculated on a price weighted basis (not market capitalisation weighted like almost all other indexes) so as Apple shares grow in value they become a much larger part of the index.
I’m still new to stock splits. Does this mean FT will add these shares to my account? I hold a small number.
Yes each share will become 4 and will be worth exactly 25%. So nothing changes for you except the number of shares you hold.
hi i’m also new to stock splits. does that mean if i buy apple now i’ll be eligible for the split or is it only current holders? Thanks
If you buy now until the 24th August close business date - the current shareholders will have the stock split then on the 31st August the stock price will drop and get adjusted.
Thoughts? Is it worth buying the stock now before the split or when it gets spilt?
Doesn’t really matter
Surely stock prices will rise on the day of the spilt though as new investors will buy?
Small investors don’t move liquid stock prices.
Does anyone know how the spilt will be displayed in the app? Willy position be shown as negative because the price of my shares will technically be less?
In previous stock splits its been a bit weird not updating immediately. Dont be shocked if it says -75% for a bit. Its shot up today though!