Apple and Tesla show gains, after pre-announced stock split takes effect
NEW YORK (NewsNation) — Both Apple and Tesla followed through with previously announced stock splits on Monday, making the shares more accessible for investors.
When the price of a share is too high, splitting stocks is a way for companies to make it less expensive to buy individual shares.
Apple’s previous stock split was 7-for-1 in 2014 and its fifth since going public in 1980.
Shares of the Cupertino-California-based company, which have rallied nearly 30% since it announced its 4-for-1 stock split and blockbuster quarterly results on July 30, rose 2.6% to $127.99 on Monday.
The rally helped the iPhone maker become the first publicly listed U.S. company to breach $2 trillion in market capitalization.
Apple shares closed at $499.23 before the split on Friday, up 70% this year.
Tesla followed suit earlier this month by announcing a 5-for-1 split to portion its richly valued stock into smaller chunks, which surged more than five-fold this year.
Shares of Tesla, up 61% since it announced its first-ever stock split in mid-August, closed at $2,213.40 on Friday. They rose 3.2% at $456.90 in early trading on Monday.