Why Apple Split its Stock 4-for-1

I am quoted in a Washington Post article “What Lies Behind Apple’s 4-for-1 Stock Split”

David Kass, a University of Maryland business professor and a longtime observer of the stock market, says many companies used to split their stock as often as necessary to keep their share price in the mid-double digits. “Back then, people were paying fixed commissions to brokers and were trying to trade ‘round lots’ of at least 100 shares,” Kass said.

If you bought less than 100 shares — an “odd lot” — your commission per share would probably be considerably higher than if you bought a round lot.

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