BERWYN, Pa. ( TheStreet) -- Shares of Dollar Financial ( DLLR) were up 1% to $30.90 in late-morning trading Monday, following the company's announcement of a 3-for-2 stock split.

The payday lender announced that shareholders of record as of the close of business on Jan. 20 would be issued "one-half additional share for each share of common stock," and that additional shares would be distributed on Feb. 4. The additional shares will be accounted for as a stock dividend and will increase the number of outstanding shares to roughly 36.6 million.

In a press release, the company said it was conducting the split "principally to obtain wider distribution and greater liquidity for the Company's common stock," however, since the split will actually consist of a large stock dividend, investors will face tax consequences.

The company also said that no fractional shares would be issued because "stockholders who otherwise would be entitled to receive a fractional share because they hold a number of shares not evenly divisible by one-half will receive an additional one-half share of common stock because each fractional share will be rounded up to the nearest whole share."

-- Written by Philip van Doorn in Jupiter, Fla.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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