Apple went public on December 12, 1980 at $22.00 per share. The stock has split five times since the IPO, so on a split-adjusted basis the IPO share price was $.10. Look at the current price of Apple and comment on the value of basing the value of a company solely on the price of its shares. Include any major development that happened within months of the stock split and comment on the price on the day before a split vs. the price on the day after the split. 

Include a discussion of why prices are not always equal to the fundamental value of a company.

Answer rating: 100% (QA)

Basing the value of a company solely on the price of its shares can be misleading and doesnt provide a complete picture of a companys fundamental wort... View the full answer