How many times has Apple stock split?

There have been three 2-for-1 stock splits. The payable dates were;

June 15, 1987
June 21, 2000
February 28, 2005

What was the effective date of the last stock split?

There are several key dates.

The Record Date - February 18, 2005 - determined which shareholders were entitled to receive additional shares due to the split;

The Split Date - February 25, 2005 - the date when holders of record or brokers were mailed notification of the shares subject to split; and

The Ex Date - February 28, 2005 - the date determined by NASDAQ when Apple common shares started trading at the new split-adjusted price.

How does a 2-for-1 stock split actually work?

A 2-for-1 split means that a new share of stock is issued for each share in existence prior to the split. After the split, each share is worth half of what it was worth immediately prior to the split.

Here's an example:
Let's assume that as of the Record Date (February 18, 2005) an investor owns 100 shares of Apple common stock and let's also assume that the market price of Apple stock is $80 per share, so that the investment in Apple is worth $8,000. Let's also assume that Apple's stock price doesn't move up or down between the record date and the time the split actually takes place. Immediately after the split, the investor would own 200 shares of Apple stock, but the market price would be $40 per share. The investor's total investment value in Apple would remain the same at $8,000 until the stock price moves up or down.

Are there any personal income tax consequences as a result of Apple's stock splits?

There are no tax consequences to U.S. residents as a result of Apple's stock splits. The tax basis of each share owned after the stock split is half of what it was before the split. For example, if you owned 100 shares before the split with a tax basis of $40 per share, after the split you would own 200 shares of stock with a tax basis of $20 per share. Foreign residents should consult their local tax advisors.

Should I have received an updated share certificate following a split?

All record-keeping for Apple stock splits is now done electronically. If you held your Apple shares in a brokerage account immediately prior to a split, the additional shares were deposited into that account. If you had a share certificate or held your shares directly with Apple's stock transfer agent, Computershare Investor Services, written notice indicating the number of your split-adjusted shares should have been mailed to you. New share certificates are no longer issued, but you should retain any original share certificates.

Where are shareholder notices from Apple mailed?

If you have stock certificates or hold shares directly with Computershare Investor Services, any shareholder mailings from Apple are sent to the address that Computershare has on file. To verify your address you can call Computershare directly at 877-360-5390. It is your responsibility to ensure that your address is current with Computershare at all times. If Computershare is unable to contact you with shareholder notices because your current address is not on file with them, you run the risk of having your shares escheated to the state of your last known residence and losing all rights to your shares in accordance with certain state laws.

If you hold your Apple shares through a brokerage account, all mailings from Apple will be sent to the address for you that your brokerage has on file.

How do I contact the Stock Transfer Agent?

If you have any questions about...

change of address
lost stock certificates
transfer of stock to another person
additional administrative services

...you can reach Computershare Investor Services (Apple's Stock Transfer Agent) as follows:

Email:	web.queries@computershare.com
Phone:	877-360-5390 (toll-free)
Address:	Computershare Investor Services, LLC 250 Royall Street Canton, MA 02021

My shares are held by a brokerage firm. How do my shares get adjusted for a stock split?

If your Apple shares are held in a brokerage account, they split automatically on the split date. You do not need to do anything.

How does a stock split affect the number of shares outstanding and the future calculation of earnings per share?

When stock splits on a two-for-one basis, the number of shares outstanding doubles. Earnings per share are half what they otherwise would have been as the net earnings are divided into twice as many shares.