Walmart Inc., a renowned multinational retail corporation, has gained widespread recognition for its extensive network of hypermarkets, discount department stores, and grocery stores. Over its history as a publicly-traded company, Walmart has conducted stock splits multiple times, often as a strategic move to maintain its stock price within an accessible range for retail investors.
Walmart’s Stock Split History
Walmart has a strong history of stock splits, having conducted 11 since it went public in 1970. Each of these splits was executed in a 2-for-1 fashion, implying that for every single share of WMT-owned prior to the split, the shareholder would have been entitled to receive two shares post-split. The stock split history can be summarized as follows:
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Walmart Stock Split
On May 17, 2023, Walmart announced a 4-for-1 stock split. A strategic maneuver employed by companies to increase the number of outstanding shares while simultaneously reducing the price per share, a stock split involves the division of existing shares into multiple, smaller shares. Despite the increase in the number of outstanding shares by a specific multiple (in this instance, four times), the aggregate value of the shares remains unchanged in comparison to the pre-split figures. As an astute investor, you have increased your share ownership fourfold, while the aggregate market valuation of your shares has remained constant.
The stock split is usually performed when the share price is so high that it becomes unwieldy or could dissuade smaller investors. Through the process of stock splitting, a company can expand the accessibility of its shares to a wider range of investors.
Why Did Walmart Split Its Stock?
The reasons behind Walmart’s decision to split its stock need to be clarified. Companies typically split their stocks to make them more affordable for individual investors and increase liquidity. It could be that Walmart’s stock price had become too high for small investors to afford, or the company wanted to increase the liquidity of its shares.
FAQs
What does a 4-for-1 stock split mean?
A 4-for-1 stock split means that for each share of Walmart-owned pre-split, the shareholder will receive four shares post-split.
When will the Walmart 2023 stock split take effect?
The exact date for the effectiveness of the 2023 stock split was not confirmed at the time of writing.
Why does Walmart split its stock?
Walmart typically splits its stock to make it more affordable for retail investors, attracting a broader shareholder base.
Does a stock split change the overall value of my investment in Walmart?
A stock split does not alter the aggregate value of your investment in any way. Rather, it augments the quantity of shares you possess, while concurrently diminishing the price per share in proportion.
How will the 2023 Walmart stock split affect the stock price?
In the upcoming year of 2023, Walmart is set to undergo a stock split that will inevitably result in a reduction of the price per share. However, it is important to note that this maneuver will not affect the overall market value of the shares in any way, as it will remain constant.
