Stock Split Watch: Is MercadoLibre Next?
The stock split mania that took over the stock market this summer has subsided, but that doesn't mean there aren't new stock splits on the horizon.
Whenever a single stock price hits the four-digit mark, investors begin to wonder if a split is coming. A high price may be a barrier to entry for investors whose brokerages don't offer fractional shares, and it may act as a deterrent nonetheless. Even though breaking down shares into smaller portions doesn't change anything fundamental about the company or its financials, it does seem to attract investors and often gives the stock a quick bump.
MercadoLibre (NASDAQ: MELI) stock was trading at more than $1,900 just over a year ago, but it's now down 55% since that high. Could a stock split jump-start this stock?
Source Fool.com
