What is a 3 for 1 stock split?

A 3-for-1 stock split means that for every share an investor has, they will now have three shares. The combined value of those three shares would equal the value of what one share used to be. For example, if a stock was valued at $15 and there was a 3-for-1 split, each share would now be worth $5.

What does Walmart's 3 for 1 stock split mean?

Here's what it means. Walmart ( WMT 0.25%) investors woke up to three times the number of shares they had on Friday after the company executed a 3-for-1 stock split. In this video, Travis Hoium explains why Walmart is splitting the stock and why the market is excited, even if it doesn't technically mean any value is added for investors.

What is a stock split ratio?

The most common split ratios are 2-for-1 or 3-for-1 (sometimes denoted as 2:1 or 3:1). This means for every share held before the split, each stockholder will have two or three shares, respectively, after the split. A stock split is when a company increases the number of its outstanding shares to boost the stock's liquidity.