MSTR - Stock Split Watch: Is MicroStrategy Next?
2024-03-28 05:07:00 ET
With the recent news that the fast-casual restaurant chain Chipotle Mexican Grill plans a 50-for-1 stock split , many investors might wonder which publicly traded company could be next.
MicroStrategy (NASDAQ: MSTR) , an enterprise software company that shifted its focus to buying and holding Bitcoin (CRYPTO: BTC) in 2020, could benefit from a split since its stock is trading close to $1,900 per share. Let's explore why a company might split its stock and whether MicroStrategy might entertain such a move.
A stock split occurs when a company divides its existing shares into multiple shares, effectively increasing the number of available shares while maintaining its market capitalization . While shareholders end up with more shares, their ownership percentage and the total worth of their investment stay the same.
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Stock Split Watch: Is MicroStrategy Next?