How does a 3-for-2 stock split actually work?
A 3-for-2 split means the investor will have one and one half times as many shares as the investor had before the split, with each share having a value of two-thirds of the pre-split market price. For example: if an investor owned 100 shares of AFG and the market price was $48.00 per share, that investor’s total value was $4,800. After the split, the investor would have 150 shares of stock with a market price of $32.00 per share. The investor’s total investment value in AFG would remain the same, $4,800.
