FORTUNE -- Apple's (AAPL) announcement Wednesday of its first stock split in more than nine years set off a round of fresh speculation about the company's possible entry into the Dow Jones Industrial Average.
That's something a stock that trades in a $400-to-$700-per-share range has as much chance of doing as a camel has of going through the eye of a needle. This has been pretty thoroughly hashed out, I'm told, on CNBC.
But that still doesn't solve the puzzle reader SoCalMe put to this group on Wednesday.
"Does anyone know how the split number might have been selected?"
Good question, given that Apple's previous three splits (May 15, 1987, June 21, 2000 and Feb. 18, 2005) were all 2-for-1.
Two readers (Anne and plcm123) offered the same explanation at roughly the same time.
As Anne put it:
"It would make the math very easy, for most of us. Apple hit all time high at around $700, so 7 to 1 split would make $100 as the new all time high number, easy to remember and to calculate how far AAPL has dropped from the all time high (for now) and later (hopefully) how much higher AAPL has gone up against the old all time high. For this reason, I like the 7 to 1 split very much. It is better than a 5 to 1 or 10 to 1 split, math wise."
Sounds good to me. $100 per share is the kind of nice round number Steve Jobs always preferred.
As plcm123 put it: "Apple loves simplicity."
Apple has posted an FAQ on the split. The choice of a 7:1 ratio is not addressed.
Now that HP's going to be dropped from the Dow, it's time to reevaluate what to do with the aging tech giant.
FORTUNE -- What would you do if it fell to you to turn around Hewlett-Packard (HPQ)?
It's a bit of a trick question that a number of skilled and experienced CEOs have had to answer in the past decade or so, and most of them came up with the wrong MOREKevin Kelleher - Sep 13, 2013 10:32 AM ET
The Dow Jones Industrial Average fell 4.45% in August. Apple shares closed up 7.67%.
FORTUNE -- Apple (AAPL) closed Friday with the stock still down 31% from its all time high of $705.07 set on Sept. 21, 2012, and down 8.65% for the year.
But as noted by Terry Gregory, who collects what he calls "useful stats" at AAPLInvestors.net, the stock has closed in the green five months out of seven this year, MOREPhilip Elmer-DeWitt - Aug 31, 2013 7:22 AM ET
The computer maker is once again the world's most valuable company
As the Dow Jones industrial average plunged another 500-plus points Wednesday, Exxon Mobil (XOM) plunged more than Apple (AAPL) and once again gave up its long-held spot as the No. 1 public company in the world in terms of market capitalization.
When the closing bell rang, Apple closed on top for the first time. The tale of the tape looked like MOREPhilip Elmer-DeWitt - Aug 10, 2011 11:55 AM ET
As of Monday morning the stock was officially down for 2011
Explain this, if you would.
Two days before Apple (AAPL) was expected to report record earnings -- with customers snapping up iPhones faster than it can make them and others still camping out overnight to buy the latest iPad -- the world's most valuable technology company on Monday was down more than $7 (2.2%) in early morning trading.
It would be one MOREPhilip Elmer-DeWitt - Apr 18, 2011 10:33 AM ET
Giving ExxonMobil a run for its money in the race to be the world's most valuable company
In a broad 2011 rally that pushed the Dow up nearly a point in mid-morning trading Monday, Apple (AAPL) popped more than $7 (2.25%) to hit new record intraday highs -- and to cross a major psychological barrier.
The company's market capitalization -- its stock price times the number of shares outstanding -- is now MOREPhilip Elmer-DeWitt - Jan 3, 2011 10:46 AM ET
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