| | While investors and analysts said the stock split won't affect their financial estimates of the company, to some it does give Apple a broader investor base.
"It potentially makes it more attractive to individual investors," said Steve Lidberg, an analyst at Pacific Crest Securities, who doesn't own shares of Apple. "Outside of that, it doesn't impact at all the way I think of the company."
Howard Gleicher, chief investment officer at Metropolitan West Capital Management, which owns shares of Apple, said that, though the stock-split has no fundamental impact, it does have some bearing on investor psychology. Investors may think they need to buy 100 shares of Apple but can't afford it, said Mr. Gleicher, noting that there is no reason they can't buy 50 shares.
While a stock split doesn't create any new value by itself, the perception of success it foments often attracts momentum buyers in the days after the announcement. |
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