Apple And Google Stock Splits + DJIA = Potential Bonus Returns

Saturday, February 11, 2012

Articles are promoting the idea that a split of $500 Apple (AAPL) stock and $600 Google (GOOG) stock could unleash buying by individual investors. The logic is that owning 10 shares of a $500 stock is unacceptable to many, but they would happily buy if they could acquire 100 shares at $50.

Although that rationale is usually incorrect, Apple and Google represent a special case. With lower-priced stock, each company could be added to the Dow Jones Industrial Average, and that would be rewarding to shareholders. Here’s the story…

This article is posted on SeekingAlpha.com

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February 2012
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