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but no one can say what it means for apple since they are a household name ... it may spur mom and pop demand . but overall individual investors account for little stock trading or ownership. the institutions dont really care about the price .
stock splits over the years are very few .
That's right. Retail investors do not move stock prices. Only a few megas like Buffet.
I am pretty sure you are wrong here. The value of the company will not change. It should move the DOW the same amount.
Apple will move from the most influential component of the 30-member blue-chip index to perhaps the 15th- or 16th-most significant member of the index.
The Dow's price-weighting means the value of the stock gauge is determined by the price changes of its components, rather than percentage changes. The overall value of the index is computed by adding the price of the components and dividing by the so-called Dow divisor, which currently stands at 0.14744568353097.
That means that every dollar move of a company translates to a 6.78-point swing in the 124-year-old benchmark.
The divisor accounts for stock splits, so in that way, Apple's 4-for-1 split will alter its own influence on the benchmark and the divisor by which the index is calculated. The divisor is determined by S&P Dow Jones Indices, which owns the Dow indexes.
UnitedHealth Group Inc. (UNH), which closed at $305.23, could become the most influential member of the Dow at the end of August. Home Depot Inc. (HD) is currently the third-priciest stock in the Dow, finishing Thursday trade at $266.31.
With the 10% increase in yesterday’s price, I sold 20% of my AAPL. With the big run-up, I had almost 8% of my portfolio in this one single stock - too risky for my blood. That said, I think it’s a great stock and would not have sold had my holdings been more balanced.
AAPL is now 10% of my portfolio as I'm up ~900% since I originally bought it. Going to keep on holding it even if it means taking on extra risk.
It’s not really all that applicable these days. Years ago when buying round lots was the norm maybe it was more of an issue but now investors can buy fractions of a share from many places like fidelity, schwab etc
Another reason not to look at the Dow as an option indicator or market gauge. Given it’s weighting and it’s and only 30 names you should be looking elsewhere and so should the news channels
Since Apple is in the Dow, it also will move the Dow less than when it was 400.
Yes, that's a big concern for a lot of people. A few companies like aapl is holding up the dow. All of the value components of the dow are stagnant and lagging.
Yes, that's a big concern for a lot of people. A few companies like aapl is holding up the dow. All of the value components of the dow are stagnant and lagging.
Apple was better valued when it was in the Nasdaq.
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