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On Thursday, Apple announced a 4-1 stock split during its fiscal third-quarter earnings report.

On Thursday, Apple announced a 4-1 stock split during its fiscal third-quarter earnings report, according to CNBC.

This mean that for every one share of Apple an investor owns, they will receive three additional shares. The company's shares haven't split since 2014 when it offered a 7-1 stock split and the price per share was above $600. Stock splits do not change anything about the company, they just split the pie into more pieces. More investors will have access to these shares because of their cheaper prices.

Apple is currently trading around $400 after hours on Thursday, so investor would be able to purchase a share of the company today for around $100. However, the shares will be distributed to shareholders on August 24, and trading will begin on a split-adjusted basis on August 31.

Apple shares surged on the news, gaining as much as 5 percent in after-hours trading.

This is only the fifth time Apple has announced a stock split since it went public.

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