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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (168832)	4/24/2014 1:11:16 PM
From: Ryan Bartholomew	Respond to of 213176

Those studies showed a slight underperformance after the split announcement or effective date if there was no cash dividend increase. But about a 3% out-performance when there was a cash dividend increase. Do you have a link to the studies you reference? Curious about this topic, not only as it applies to Apple's decision, but in general. Did the studies account for selection bias, whereby stocks that have been increasing dividends may be more or less likely to outperform regardless of a split? In other words, stocks with splits + dividend increases (which inherently puts focus on stocks with typically large & growing profits) may have different characteristics that lead them to outperform anyway. Another question is whether the data in the studies was statistically significant (i.e., the 3% variance being outside random fluctuation parameters with a high degree of confidence). There's not much of a rational basis for a split causing any difference in investor behavior any more than $100 bill being exchanged for ten $10s. Art detailed the few valid factors I can think of, but in the most extreme case, they're all relatively minor (e.g., how many people are holding off on AAPL investment because they can't donate $80 by giving a single share to a charity)?

To: Sr K who wrote (168832)	4/24/2014 4:18:10 PM
From: Moonray	Respond to of 213176

Apple Inc. Assigned 'AA+' Corporate Credit Rating; Outlook Stable Publication date: 23-Apr-2013 16:45:15 EST NEW YORK (Standard & Poor's) April 23, 2013--Standard & Poor's Ratings Services today assigned its 'AA+' corporate credit rating to Cupertino, Calif.-based Apple Inc. The outlook is stable. We anticipate that we would also assign this rating to unsecured senior debt that may be issued as part of the shareholder return program, subject to review of the documentation. More at: standardandpoors.com o~~~ O