Starting on Monday, one share of Apple ( ,Tech30) will go from costing close to $647.50 to about $92.50 — give or take a few iCents. That’s because the company is doing what’s known as a stock split. It is issuing more shares to existing investors in order to bring down the price of the stock.
Current shareholders will receive seven shares of Apple for each one they now own. As a result, the stock price will be one-seventh of where it is right now.
It’s important to note that if you already own Apple, nothing really changes. You just have more stock at a lower price. The value of your investment — and the market value of Apple — stays the same.
So why is Apple doing this? Companies with stock prices above $100 often decide to split their stock to try and lure more individual investors.
Read more: CNN