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.

(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.

Continue reading

Source Fool.com