Apple Stock Reaches a Milestone

Apple stock reached a symbolic milestone last week as the total value of all the company’s stock—its “market capitalization”—surpassed $700 billion for the first time. Some analysts are now speculating that the company could grow to become worth over $1 trillion. These numbers are gaudy, and they reflect the fact that Apple’s business has been booming. But they may distract from what Apple shareholders should really focus on, which is the stock’s total return.

Topics: Blog Dividends Apple

The Effects of Innovation

Is more innovation good for stocks? Given the success of Apple after the release of new products such as the iPhone or surging stock price of electric car manufacturer Tesla Motors, it may seem obvious that new innovations lead to better investment returns. But for the stock market overall, or even an entire sector of the market, that’s not necessarily the case.

Topics: Blog Stock Market Facebook Innovation Apple Tesla

The Meaning of Stock Splits

Last week Apple announced that it would undertake a 7-for-1 stock split in June. Such a split will result in every Apple shareholder will getting six additional shares for each one that they hold when the split takes place, and as a result the price of Apple’s shares will start trading at one seventh of their price before the split. In other words, since shareholders will have 7 times as many shares at one seventh of the price, the value of their holdings won’t change.

Topics: Blog Citigroup Stock Split Dow Jones Apple