The shares of Apple Inc. (NASDAQ:AAPL) started trading at $92.70 per share when the market opened today as the tech giant’s 7-for-1 stock split officially took effect.

Apple Stock AAPL

The iPhone and iPad maker announced its decision to split its stock in April. Apple Inc. (NASDAQ:AAPL) took the decision for the first time in nine year,s and explained that the move will encourage more investors to invest in the company.

Shareholders on record at the close of business on June 2, receive additional 6 shares for every share they held following the 7-for-1 stock split. The number of authorized common shares of Apple Inc. (NASDAQ:AAPL) increased from 1.8 billion to 12.6 billion.

Bernstein analyst Toni Sacconaghi commented in his previous note to investors that the stock split will widen retail interest for the shares of Apple Inc. (NASDAQ:AAPL). It is also one of the reasons behind his price target increase to $700 a share. Bernstein also suggested that Apple’s stock price will more easily increase (e.g., $90 to $100, vs. $625 to $700).  He said, “Historically, our analysis points to evidence that companies that split their shares outperform in the near-term.”

Stock split opens opportunity for Apple to be included in Dow 30

Market observers suggested that the 7-for-stock split opens an opportunity for Apple Inc. (NASDAQ:AAPL) to be included in the blue-chip index—the Dow Jones Industrial Average (DJIA). The iPhone and iPad maker is a blue chip company, but not included in the DJIA because it is a price-weighted index. Given its current trading price, Apple will now have the chance to become part of the Dow 30.

Apple Inc. (NASDAQ:AAPL) is one of the most valuable companies in the world with an approximately $565.8 billion market capitalization. The iPhone and iPad maker is growing steadily and it has all the requirements required to be added to the blue chip index.

AAPL: Previous stock splits

Apple Inc. (NASDAQ:AAPL) implemented several stock splits in the past.  The tech giant completed 2-for-1 stock splits in May 1987, June 2000 and February 2005.

Apple Inc. (NASDAQ:AAPL) stock increased by 2% in the first year following the 2-for-1 stock split in 1987. The stock rose 60% in the first year after the 2006 stock split. During the first year after the stock split in 2000, Apple’s stock dropped 57% amidst the tech bubble.

Shares of Apple Inc. (NASDAQ:AAPL) are currently trading around $93.55 per share, up by more than 1% at the time of this writing, around 2:20 in the afternoon in New York today.