In this week’s stock spotlight, I wanted to focus on a company that many people are probably familiar with: Apple.
Apple is currently trading at just over $120 per share, but back in June of 2014, they were trading at close to $700 a share.
They didn’t drop in price. However, they did decide to split their stock. When a company decides to split a stock, it takes the value of the stock and splits it by any amount they choose and give the people who own that stock the new amount.
So in the case of Apple, they did a seven to one stock split, which meant that the value of the stock was essentially divided by seven, but if you owned 100 shares, you now had 700.
Now the stock has since then been up 24.52 percent in that timeframe and continued to do well. Apple clearly has market dominance in many areas, including market cap.
The market cap of a company is essentially the value of the company on the financial marketplace, and this is determined by multiplying the price of the stock by the shares outstanding. They currently are valued based on their market cap at $675.62 billion. This is very high, and people have over time made a large amount of money from Apple.
Only time will tell how the stock does in the future, but if history is any prediction, it will continue to soar to new heights for years to come.
