Name: 0609Apple
Uploaded: 2014-06-09
Duration: 1 min 35 s
Description: 0609Apple

Apple shares which were trading around $ 650 Friday plummeted over the weekend. It's now trading at just $ 92 per share but don't worry this is all part of Tim Cook and companies plan. The company stock split went into effect Monday. Apple's reasoning, quote, we want Apple stock to be more accessible to a larger number of investors. [ UNKNOWN ], and that makes sense. $ 92 is a whole lot easier to spend than $ 650. Apple split it's stock three other times in company history. In 1987, 2000, and 2005, but each of those times, the stocks split on a two- for- one basis. This time Apple did a seven for one split. Many reports this could mean Apple gets a spot on the Dow Jones industrial average, which determines a companies influence based on it's price per share. In the past Apple simply has been too high. Even a simple two for one would have kept Apple's shares around $ 325 a piece which is still pushing it. But at $ 92 per share, Apple will theoretically be able to get on the DOW, and still have sway. Although it's reportedly valued at some $ 557 billion, a writer for Fortune says Apple's earnings are so big, it's having trouble finding profitable ways to invest it, which could be a problem long term. So, there are some arguing this split could be a distraction. An analyst for Yahoo Finance says :. I wouldn't really call it a smokescreen, but I do think that Apple management, right now, is in a phase where they don't have an obvious next big thing. That said, reports out Friday indicate Apple's long- rumored iWatch will launch in October. A product many in the media are saying could be Apple's biggest launch since the iPad. Thanks for watching. I'm Lauren Goris.