IPO (initial public offering) is a stock splits tend to be carried when a corporations want their shares to be bought and sold by interested individuals on a regular basis, meaning that it wants to make its shares more affordable to more people to a certain extent.
By doing this, they will even increase their capitalization as a result of more accessible shares mean more individuals fighting to get hand on them, that successively, causes the share value to rise through the increased competition between interested people for a restricted range or limited number of shares.
Thirty-seven years ago, Dec.12 1980, Apple went public. “initial public offering (IPO)” at $22.00 per share. Do you know Apple’s stock has split 2 for 1 on Three Different Times/occasions: 1987, 2000, and 2005.
Then in 2014, Apple issued a very big ONE which was 7 for 1 stock split. Basically what that means/implies is that you would have 56 shares today for every share purchased back then at 1980.
Through the successes of the apple2, Macintosh, iMac, iPod, iPhone. Apple is now currently most valuable company in the world, in terms of market capitalization. The most recent published Apple’s market cap was roughly $610 billion.
Here is what you would have if you had invested $1,000 in Apple’s IPO.
IPO in 1980
If you had invested $2,000 dollars in Apple’s IPO on December 12, 1980. Given that its IPO was priced at $22 a share, you would have been able to purchase 90.90 shares of stock in the tech giant. we will assume that you bought 90 shares for $1,980 in Apple.
Stock Split in Year 1987
Apple has had a total of four stock splits over the years. Stock split is when a single share invested becomes multiple shares, with each one being worth a proportional percentage of the original share’s value, which means if had a $100 share in apple ipo. You subjected to a 4 for 1 stock split, You would have 4 shares at $25 per share [25*4]. Are You are still confused or not clear about this…
For example, if someone had a $100 share that was subjected to a 2 for 1 stock split, said individual would have 2 shares at $50 per share. Likewise, if someone had a $100 share that was subjected to a 4 for 1 stock split, said individual would have 4 shares at $25 per share. subjected to a 10 for 1 stock split, You get 10 shares at $10 per share. Hope you are clear about Stock slip NOW..
Apple’s first stock split happened on June 16 of 1987 and it a was 2 for 1 stock split. As a result, Maintaining Our IPO in 1980, if you had bought 90 shares in Apple at its initial IPO, you would have had 180 shares by the time that the stock split was done.
Stock Split in Year 2000
Apple had another 2 for 1 stock split Once again on June 21, 2000. It was the second stock split since Apple’s IPO on December 12, 1980. Let’s assume We Maintaining Our 90 shares bought initially at apple IPO in 1980, which had 180 shares in 1987 by the time the first stock split was done. After this second stock split in year 2000 you would have had 360 which meant an incredible rate of return on your initial investment.
Stock Split in Year 2005
The third stock split came up on February 25, 2005. Once again, it was a 2 for 1 stock split. As a result, you now possess 720 shares at Apple Inc.
Stock Split in Year 2014
2014 was a year of investment BOOM for all whom had managed to invest/buy shares in Apple Inc. Because of the great success and remarkable products, Apple got the height of its fame and fortune. This leads Apple to another stock split on June 9, this time, it was a 7 for 1 stock split because Apple’s share price had seen such enormous increases. As a result, you now possess 5040 shares at Apple Inc by the time this stock split was done in 2014.
An investment of $2,000 (or $1,980, as shares opened at $22) would be worth $570,880 today. Roughly 57,400% return if You are to withdraw from apple ipo and that’s not including the thousands of dollars in dividends that Apple paid over that time.
Apple’s stock has been splited four diffrent times now-
Two-for-One splits in 1980
Two-for-One splits in 2000
Two-for-One splits in 2005
and another massive Seven-for-One split in 2014
That same $1,980 you invested in apple IPO for 90 stock share would have been multiplied into 56 shares today. As of July 24, 2015, Apple closed at $124.50 per share. Currently, the initial investment of $1,980 would be worth $627,480, which is 5,040 shares multiplied by $124.50 per share. The ROI is an immense 63,181.8%.