If Apple Joins the Dow, Who Would Exit?

The Apple Inc. World Wide Developers Conference in San Francisco on June 2 Photograph by David Paul Morris/Bloomberg

Contrary to what you might have seen on CNBC, Apple stock did not decline 85 percent over the weekend; it split seven-to-one, so that an investor holding one share worth about $644 on June 6 had seven shares worth about $92 at the start of trading on Monday. Any Econ 101 textbook will tell you that, on the one hand, stock splits shouldn’t matter, because it’s mere math;. On the other hand, they might matter because investors are crazy and some people really might buy a stock because it seems “cheaper.”

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