[njarboe]

Very few people invest in the basket of companies that make up the Dow Jones. Its use as an index of how the stock market is behaving is really a historical artifact at this point. One ETF in the top one hundred [1] ETFs is based on the Dow Jones Industrial Average and that one is ranked 43rd. Joining the S&P 500 is a big deal, on the other hand, as the three biggest ETFs are S&P 500 funds.

[1]https://etfdb.com/compare/market-cap/

[ogre_codes]

Fair enough. Even so, I think inclusion/ exclusion in the DOW is far more likely to affect Apple's choice to split or not than making the stock more accessible to investors.

[betterunix2]

I doubt it, and I think there is a misunderstanding about the investors Apple referred to in their public statement on the split. As a company's share price rises the stock becomes less liquid, because trades happen in smaller quantities; Berkshire Hathaway's class A shares are probably the most extreme example. Low liquidity is a problem for mutual funds, which have to sell assets whenever an investors sells their shares in the fund (which may be a relatively small sale e.g. a retirement account distribution), because low liquidity makes asset sales more difficult. In general institutional investors will have liquidity rules that constrain the assets their funds can hold to avoid that kind of problem.

Given how much investment capital is held by institutional investors, companies have a good reason to split their shares if the share price is too high. Berkshire Hathaway created a new share class to support the needs of institutional investors, and I would read "accessible to investors" as "conforming to the liquidity requirements of institutional investors."