A Stock of Which You Own 100 Shares Has Just

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The Answer is The three-for-two split means that you and other owners will receive one newly issued share for every two that you currently own.Thus, your holdings will increase from 100 to 150 shares.However, the assets of the firm and its investment opportunities have not been altered.Therefore, it would be logical to expect that the market price per share would fall to $20.This can be seen in that three shares at the new price of $20 would precisely equal two shares at the old price of $30.To the extent that the market price does not settle at this theoretically expected level, the investors are "winners" or "losers." But that is the only gain or loss in this process.

A Stock of Which You Own 100 Shares Has Just

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