By Rick Sutcliffe
Apple and Tesla last week split their stock, the former by four-to-one and the latter by five-to-one. Since splits make the price of a single stock lower, such actions tend to attract more retail investors and this pushes the price up further.
In the case of Apple, this is merely the latest in a long line of such splits, now amounting to a 224:1 total from the beginning. Looking back on the initial IPO in 1980, this is equivalent to about a $.40 initial cost per share.
Since these new shares are now worth $132, the share price has appreciated by a factor of 330 times, meaning that an initial investment of $10K would now be worth $3.3M. Not bad for a company that pundits once nearly universally predicted was near its demise.
True, it is no longer iSteve’s company but iTim’s, however the changes in direction