(Reuters) – Apple (AAPL.O) introduced a stock break up on Thursday and it may not bode properly for future positive aspects within the Dow Jones Industrial Common .DJI. FILE PHOTO: The Apple Inc emblem is seen hanging on the entrance to the Apple retailer on fifth Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File PhotoThe iPhone maker made the shock announcement in its quarterly report, saying it would break up its stock four-to-one when buying and selling opens on Aug. 31, Apple’s first share break up since 2014. Stock splits have change into uncommon on Wall Street in recent times, with simply three S&P 500 members asserting splits in 2020, in comparison with a median of 10 a 12 months over the previous decade, in line with S&P Dow Jones Indices. Splitting their stocks is a method for firms to make it inexpensive to purchase particular person shares, doubtlessly attracting retail traders who make small trades. Amazon’s shares price $3,051 every, whereas an Alphabet share sells for $1,538 and Chipotle Mexican Grill’s shares price $1,148. With Apple’s stock surging 6% in prolonged commerce to $408 following its sturdy quarterly report, the break up means shareholders will obtain three shares for each one which they personal. Traders will have the ability to purchase shares for nearer to $100 every. Apple stated it hoped to make the shares “more accessible to a broader base of investors.” Nonetheless, brokerages more and more let clients purchase elements of shares, making the good thing about share splits much less clear than previously. “Stock splits have become far and few between because people no longer care if it’s a $500 or $100 stock, because investors can now buy fractions of shares,” stated Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Splitting Apple’s shares means the Silicon Valley firm can have much less affect throughout the Dow, which is weighted to the price of the shares of its 30 parts. Apple was added to the Dow in 2015, and the 230% acquire in Apple’s stock since then has been a significant component driving positive aspects within the Dow, extensively seen as a mirrored image of the U.S. stock market. Apple at present accounts for about 10% of the Dow, and after the share break up, it would make up solely 1 / 4 of that, rating it the 18th most closely weighted stock within the Dow. Potential future positive aspects and losses in Apple’s stock can have much less affect within the Dow’s efficiency. Apple’s stock break up won’t have an effect on its weight throughout the S&P 500 .SPX, which is predicated on market capitalization. GRAPHIC: The place did all of the stock splits go? – right here Reporting by Noel Randewich; enhancing by Megan Davies and Tom BrownOur Requirements:The Thomson Reuters Belief Rules.