How does a three-for-one stock split work?
After a three-for-one split, stockholders will receive two additional shares for every share they currently own. Therefore, each stockholder will own three times as many shares after the split as prior to the split. Accordingly, the price of each share will be roughly one-third the pre-split share price, thus the total value of the holdings immediately after the split will be the same as before the split. Each stockholder’s investment value remains the same until the stock price moves up or down. For example, a stockholder who owns 100 common shares of Deckers at a market price of $150 as of the Record Date has a total value of $15,000. After the split, this stockholder will own 300 common shares valued at approximately $50 per share for a total investment value of the same $15,000.
