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Will Apple be announcing a 2-for-1 stock split?

BloggingStocks has received an interesting tip that Apple, Inc. (NASDAQ:AAPL) might soon be announcing a 2-for-1 stock split. The tip (which we consider to be solidly in the rumor category), alleges that a 2-for-1 stock split will be voted on at the next Apple board meeting, and our tipster says materials are already prepared for the vote.

This rumor certainly rings of possible truth, as Apple's stock has been rocketing up in the past few weeks. Often stocks that rise this quickly are split. Many finance advisers believe that potential investors view a sub-$100 unit of stock as more 'buy-able.' Keeping the "unit" price low by splitting the stocks as they get above the $100 mark keeps investor excitement hot.

Apple's last split was in February of 2005, a 2-for-1 split like the two previous; on June 21st, 2000, and on May 15, 1987. These splits aren't common, but they do coincide with surges in stock price. Certainly it's reasonable to believe that, with the move of the stock price from under $20 to over $80 in the past two years, Apple might be thinking about a split in the near future.

Does a split by Apple sometime soon make sense? And would it spur you to invest if you could snag one share for $40?

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DJIA-74.9212,454.83
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Last updated: May 25, 2012: 08:43 PM

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