DSW shareholders approve 2-for-1 stock split

COLUMBUS, Ohio (AP) -- DSW's stockholders have approved a 2-for-1 stock split.

The footwear and accessories retailer proposed the stock split in August. At the time, it did not give a reason for the proposed action.

Typically when a company does a 2-for-1 stock split, investors find themselves holding twice as many shares, each worth half the previous price. Often when companies split a stock in this way, it's because they're hoping the psychological change will juice the stock's price: For example, investors might feel more comfortable buying two shares of a $50 stock rather than one $100 stock.

DSW's stock split, though, seemed designed to reduce the voting power of Class B shareholders. The Columbus, Ohio, company proposed issuing one Class A share in exchange for each Class A or Class B share. The Class A shares are worth one vote per share in shareholder votes, but the Class B shares are worth eight votes per share.

DSW Inc. said on Thursday that shareholders will receive additional shares as a result of the stock split on Nov. 4.

Once the stock split is completed, DSW will have about 90.4 million outstanding shares. This will include approximately 82.5 million Class A shares and 7.9 million Class B shares.

The stock closed Wednesday at $81.75, up about 24 percent since the start of the year, and added 6 cents in premarket trading.