Stock splits and apple stock - Stock splits and compound interest explained with apple example

Stock splits explained - Apple Stock🫪📈 Stock splits are a simple mechanism of stock market. A company can choose to split it’s $100 share into junior shares of $10 each. In such a case the ratio of 1:10 is used for stock split and the value of your holdings remains unchanged. Stock splits are used to enable a smaller share price by increasing the total shares. Reverse splits or share consolidation is another mechanism that inverts the process of stock splits. Instead of using a ratio like 1:4 or 1:10 - a ratio of 4:1 or 10:1 is used to consolidate junior shares into a larger share of higher value. Similar to stock splits, these do not affect the total value of your portfolio. This video shows the impact of a long-term investment of an early investor of Apple Inc and the impact of compound interest and stock splits. By using the mechanism of stock splits, apple inc. And similar companies can create junior and hence affordable shares which will be accessible to general public. Beginner investing series by frugal rahul.