Following Apple's announcement that it will split its stock 2-for-1 its share price rose almost 4 per cent.

Following the announcement of the split, shares of Apple rose $2.85, from $78.36 to $81.21.

A report on states that Apple's last stock split was in 2000, at the height of the technology boom. It had an earlier stock split in 1987.

More attractive

According to the report, while splits do not change the value of stocks they tend to make a stock more attractive to small investors. As was noted in a recent Business Week report, Apple is currently "high-priced", at "37 times this year's estimated profit".

Pacific Crest Securities analyst Steve Lidberg said: "The split makes it a little bit easier to buy for individual investors but it does not change the fundamentals."

The report also notes: "Splits may also indicate that management has confidence in continuing to boost earnings and that as a result the stock price will rise."