Stock splitting is cosmetic meaning they don’t change anything about a company’s underlying liquidity. They can take the interest of innovation from small investors which is now cheaper But that interest will not be enough to affect the share price more so large investors are already trading in stock freely.
Apple’s move is not uncommon, and the company has brought a stock split in the past, with the latest tech giant coming in 2014, which enabled it to judge and eventually join the Do Jones Industrial Average.
For example, during the tech bubble many companies introduced stock dividends, which led to speculation and increased stocks without rising earnings to raise prices. Many investors have recently feared that tech shares could go far beyond their aspirations during speculation.
Posted Using LeoFinance