What You Need to Know About Apple's Stock Split

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These are the main things to know about Apple Inc.'s 4-1 stock split that went into effect Friday.

These are the main things to know about Apple Inc.'s 4-1 stock split that went into effect on Friday, according to MarketWatch.

Apple's share price will look cheaper tomorrow morning. Although, the fundamentals of a company are not affected by a stock split. Apple announced the split citing that it will make its shares “more accessible to a broader base of investors.” Apple shareholders will own four shares for every one they owned on August 24. Tesla will also start trading on a split-adjusted basis.

On Friday, Apple shares closed at $499.23, which means they will probably open Monday around $124.85. This is the fifth time Apple has split its stock since going public. If Apple had never split its stock, one share would currently go for around $28,000.

Furthermore, Apple's stock split helps bring the share price more in line with other companies in the Dow Jones Industrial Average, which is price-weighted. Prior to the split, Apple was the largest component in the Dow. After the split, Apple will move down to the middle of the pack with the 18th largest weight out of the 30 companies in the index.

The Dow has also made some recent changes after Apple announced its split, kicking out Pfizer, Exxon, and Raytheon. Salesforce.com, Amgen, and Honeywell International will take their places.

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