According to Bloomberg, Apple might consider splitting its shares in order to enter the Dow Jones stock index . Split? Dow Jones? Let’s take a look at what all this means.
A stock split (or a stock split, as they say in the United States) is an operation by which a company increases its amount of available stock while maintaining the same value of its capital. That is: more shares, but each one is worth less . This operation would allow, together with the dividend already announced a few months ago, Apple to enter the Dow Jones stock exchange index.
And what is the Dow Jones stock index? It measures the financial performance of the thirty most valuable American industrial companies in the market. It is more or less equivalent to the Spanish IBEX 35 index. According to the analysts, Apple is the only company valued at more than 215 million dollars that is not present in the Dow Jones and this would be a perfect time for you to enter seeing its enormous performance.
It is precisely the companies with the most value that make the index vary the most , so the entry of Apple (the company with the largest market capitalization in the world) would reinforce that index. And if Cupertino’s company continues to experience the growth it has seen in recent years, one could say that the index would enjoy certain guarantees of stability. But we will perhaps leave these details to the economic and stock market experts.