What Is a 3-for-2 Stock Split?

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.

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.