At first glance, it might surprise investors to see Microsoft (MSFT 1.60%) as a stock-split candidate. Stocks such as Broadcom allowed nominal share prices to rise above $1,000 per share before initiating a split. Microsoft trades at just $518 per share at the time of this writing, far below such levels.
Still, investors should remember that Microsoft stock has increased by more than 1,300% since Satya Nadella became CEO in February 2014, and growth is expected to continue. Additionally, one aspect of Microsoft stock will probably lead to a stock split before its nominal price reaches four figures, so investors should prepare for such an event.
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