When a stock splits, the company grants shares of additional stock to those that already own the stock. In a 3 for 2 split, they are basically giving you an additional share for every share your currently own. ex: if you own 100 shares of a company, they will grant you an additional 50 shares so that you will then own 150 shares total (3 for every 2). A stock split does not affect the value of your investment. The day after the stock split, you will see an adjustment of the stock trading price to compensate for the additional shares. Example - before the split 100 share at $60 = $6,000; after the split 150 shares at $40 = $6000. This way, the overall value of the company isn't effected, but the share price can be lowered, and it costs the company very little to do this.
Generally, companies do stock splits in order to keep their stock price within a reasonable trading price range, without effecting the value of the company to shareholders. Lower priced stocks (less than $20) are usually traded by small investors, and higher priced stocks (over $75) are usually traded by institutional investors. Keeping a stock in the $30 to $60 price range will keep it in a range that institutions look at and for serious individual investors because they tend to buy and hold.
2007-02-01 02:05:28
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answer #1
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answered by Willy179 2
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For every two shares of stock you own, you will get another in a split. Example, if you own 4 shares of stock, in a 3 for 2 split you would now own 6 shares. Take the number of shares you own and multiply by 1.5 and that will give you the new total number of stock shares. .
2007-02-01 01:52:41
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answer #2
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answered by Anonymous
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A 3:2 split is when the company alters its stock base to change how many shares you own, so you would recieve 3 shares for every 2 you own. The share prices changes accordingly, so your investment value will be consistent. Companies do this to make shares more affordable, but its not good for investors, and you have to share the shareholder profit of dividends with more investors. You can learn more and get investment advice at www.economicinvest.com
2007-02-01 04:24:00
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answer #3
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answered by redfearn_jc 2
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A stock split of 3:2, this means that the shares you have are being upgraded. So the company is offering you somewhat a good deal, no you do not make more money, you just get more shares. For the 3:2 split, for every two shares you have, the company is giving you three. The value of the shares may go down also.
2007-02-01 01:46:17
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answer #4
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answered by Army Veteran 2
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The most common split is a 2 for 1, basically doubling the number of your shares. It cuts the price of the share in half. Your total investment continues to be the same. It is commonly done whe the shares get to highly priced. Lower share prices attract more buyers. The same concept applies for the 3 for 2 split, with corresponding percentages.
2007-02-01 01:59:58
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answer #5
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answered by mauroh 1
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Every two shares of stock will be replaced with 3 new shares.
If the value was $30 per share. ( x 2 = $60 total) they will be replaced with 3 shares at $20 each (still $60 total).
2007-02-01 01:48:02
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answer #6
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answered by MR MONEY 3
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The company is not "giving you 3 new shares" for every two you have. It's giving you 1 new share, so for every 2 shares you own (pre split) you now (post split) have 3 shares.
2007-02-01 01:49:14
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answer #7
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answered by gosh137 6
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It might help if you think about nickels, dimes, quarters, etc.
I'll trade you 5 nickels for a quarter. That's a 5 for 1 split.
You'll end up with more coins, but the value will be the same (just in a smaller denomination). Same goes for stock splits.
2007-02-01 04:25:06
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answer #8
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answered by derek 4
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the total valve of 2 share divided by 3
2007-02-01 11:04:18
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answer #9
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answered by NONE Y 3
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i would say one of the sleeve threads is not to happy ,go for solid
2016-05-24 01:39:46
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answer #10
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answered by Anonymous
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