Back in the dot-com days, it was fashionable for companies to split their stocks, but thatis no longer true, according to the StreetInsider Insideris Blog on Thursday.
Many have wondered if an Apple (AAPL) stock split is imminent with the price having surged well into the US$180 range. The answer just might be that itis no longer fashionable and no longer a sign of success, especially when a company has so many shares outstanding.
"Back in the dot-com days, Internet stocks would go up and then split, then go up again and split. It was basically a sign a passage. If your stock went up enough, you would split your stock, make headlines, and then gain more buyers, and a few months later, split again. Investors basically forgot the pie concept, that a split just cuts the same pie into more pieces," the author wrote.
These days, however, in a trend started by Google, companies see prestige in emulating that company. Apple was cited as one of those.
"Todayis new status symbol," the author observed," is having a stock price that is higher than the average manis daily wage."