Language from Apple
The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020 will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.
What is the effective date of the split?
There are several key dates.
The Record Date – August 24, 2020 - determines which shareholders are entitled to receive additional shares due to the split.
The Split Date – August 28, 2020 - shareholders are due split shares after the close of business on this date.
The Ex Date – August 31, 2020 - the date determined by Nasdaq when Apple common shares will trade at the new split-adjusted price.
What happens if I buy or sell shares on or after the Record Date and before the Ex Date?
If you sell shares on or after the Record Date (August 24, 2020) but before the Ex Date (August 31, 2020) you will be selling them at the pre-split price. At the time of the sale, you will surrender your pre-split shares and will no longer be entitled to the split shares. Following the split, the new owner of the shares will be entitled to the additional shares resulting from the stock split.
If you buy shares on or after the Record Date but before the Ex Date, you will purchase the shares at the pre-split price and will receive (or your brokerage account will be credited with) the shares purchased. Following the split, you will receive (or your brokerage account will be credited with) the additional shares resulting from the stock split.
Are there any U.S. federal income tax consequences as a result of the stock split?
There will be no taxable income as a result of the stock split for U.S. federal income tax purposes. The tax basis of each share owned after the stock split will be 1/4th the amount 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 400 shares of stock with a tax basis of $10 per share. Foreign investors should consult their local tax advisors. Although this tax information is provided for your assistance, we are not providing personal tax advice. You should consult your personal tax advisor regarding the tax consequences of any transaction you undertake with these shares.
How will I receive the split shares?
If you hold shares in a brokerage account, the additional shares to reflect the split will be deposited into your account in the days following the Split Date (August 28, 2020). Contact your broker if you have any questions regarding timing. If you have a share certificate or hold your shares directly with Apple’s transfer agent, Computershare Trust Company, N.A., the post-split shares will be deposited in a book-entry position and Computershare will mail you a statement indicating the number of shares that you own following the split. We will not be issuing new share certificates. If you have a physical stock certificate, there is no need to return it. You will be credited the split number of shares in a book-entry position.