TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Wednesday, March 20.
Full Video Transcript Below:
J.D. DURKIN: I’m J.D. Durkin - reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Investors are awaiting the Fed’s decision on interest rates with a majority expecting the central bank to hold rates steady for the fifth straight meeting. The decision will conclude with remarks from Fed Chair Jerome Powell in Washington. Investors will be listening closely for hints into the Fed’s path forward on monetary policy.
In other news - in what will be one of the largest stock splits in the history of the New York Stock Exchange, Chipotle has announced its board has approved a 50-for-1 split for investors. That means for each share an investor holds, they’ll receive an additional 49. A single share of Chipotle currently costs more than $2,700.
Stock splits normally occur when a company feels its share price is too high for the average investor to purchase - and that’s exactly why Chipotle is making the move. Company CFO Jack Hartung said one of the main reasons for Chipotle’s first-ever split was to make the stock more “accessible” to a broader range of investors.
It was just four years ago that Chipotle was ordered by the Department of Justice to pay a $25 million fine. The penalty was handed down after more than 1,100 people became sick due to foodborne illnesses between 2015 and 2018. Since the scandal, Chipotle shares have risen by more than $2,000. The stock split is set to take effect in June.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.
