Q:

What is a 3-for-2 stock split?

A:

Quick Answer

A three-for-two stock split is defined as a corporate more to increase the number of stock shares on the market by giving shareholders three shares of stock in exchange for every two shares held, according to Investopedia. The split shares retain the same total stock value as before.

Continue Reading

Full Answer

Investopedia states that the three-for-two stock split is one of the more common splits to take place. Other common splits include the two-for-one and the three-for-one. Despite maintaining the same total value, each individual share will be worth less after the split. The lowered price per share is due to the fact that while there are a higher number of shares on the market, the actual worth of the company does not change with the split.

Learn more about Investing
Sources:

Related Questions

  • Q:

    How do you read a NY Stock Exchange live ticker?

    A:

    Stock exchange tickers tend to read with letters, numbers and symbols; generally, the letters represent a specific company's stock ticker symbol while the numbers and symbols indicate how many shares have traded at what price and the change that price represents, whether higher or lower than the previous price, as reported by Investopedia. Tickers produce information when a stock price changes, and the symbols on a stock ticker typically include both an up and a down arrow to indicate that a stock price has risen or fallen since the close of the stock exchange on the previous day. These arrows may be monochrome or in two different colors, often green for a price raise and red for a price fall, indicated by an upward and downward arrow, respectively.

    Full Answer >
    Filed Under:
  • Q:

    What is a WellPoint stock split?

    A:

    A WellPoint stock split is one of three historical stock events that changed the number of WLP shares held by WellPoint investors, according to Stock Split History. These stock splits occurred in 1996, 2002 and 2005. The 1996 WellPoint stock split was a two-for-three reverse split. This means that for every three shares a shareholder possessed pre-split, the shareholder held only two shares after the reverse split.

    Full Answer >
    Filed Under:
  • Q:

    What does a BP stock split mean to its shareholders?

    A:

    As of September 2015, BP last split its stock on Oct. 4, 1999, doubling its number of shares and halving their price, according to BP. Stockholders' existing share prices were cut in half, and they were issued one new share for each share they already owned.

    Full Answer >
    Filed Under:
  • Q:

    What are total stock market index funds?

    A:

    Total stock market index funds are mutual funds or exchange-traded funds, or ETFs, that replicate the exposure to every stock or security held on a particular exchange, country or particular threshold, known as a market cap, explains Investopedia. A common example is the Vanguard Total Stock Market Index Fund.

    Full Answer >
    Filed Under:

Explore