Why Apple continues to divide its stocks when rivals don’t

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Apple is doing something that no other mega-cap tech stock has done in recent years: split its stock.The iPhone giant announced the move in its third quarter earnings report, saying its stock will be split into quarters from August 31. This means investors can buy an Apple (AAPL) – Get the report shares, which were worth $ 425 each on Friday, for just over $ 100 a pop depending on the stock’s performance by then.

“It’s a really interesting move, without a doubt,” said Pierce Crosby, managing director of TradingView, a social network for traders. “As Apple approaches $ 2 trillion in market value, a stock split has no value on its own, but it plays into the behavioral psychology of retail investors. If a trader wakes up and sees a price that is now 1 / 4th of what it was the previous trading day, some will buy it out of natural instinct. ”



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