Apple Stock Split Takes Effect: Why Investors Should Pay Attention - TheStreet

Apple Stock Split: Why Investors Should Pay Attention

Author:
Publish date:
Video Duration:
3:56

And just like that, it's splitsville for Apple. Apple began trading for the first time Monday after its stock split. 

Though the move would have been far more significant before the era of fractional shares, investors should keep an eye on Apple’s 4-for-1 split.

Apple opened for trading up around 2% to $127.66 in its trading debut following Friday's split. Following the split, Honeywell  (HON) - Get Report, Salesforce  (CRM) - Get Report and Amgen  (AMGN) - Get Report also joined the Dow Monday.

The Dow, Nasdaq and S&P 500 all traded lower to kick off the final trading day of August. 

TheStreet’s Apple Maven and founder and portfolio manager of DM Martins Capital Management Daniel Martins suggests treating a stock split like a pizza. “Do you have more pizza by cutting it into more slices? Would you pay more for pizza that is cut in 16 slices rather than eight or four?” Martins wrote.

Yes ,the stock split has become obsolete, though makes it makes for a delicious metaphor, but that doesn’t mean it should be ignored. Martins breaks down two scenarios where the split could matter in the video above. Index investors should pay particular attention to a little lesson from history. 

Read his full breakdown over on Apple Maven

Watch More Explainer Videos From TheStreet.com: