Which one of the following does not affect the total equity of a company but does increase the number of shares outstanding?
A) Special dividend
B) Stock split
C) Share repurchase
D) Rights offer
E) Liquidating dividend

Question

Quizplus · Accepted Answer

A stock split does not affect the total equity of a company, as it does not change the overall value of the company's assets or liabilities. However, it does increase the number of shares outstanding, which effectively lowers the price per share. This is usually done to make the stock more affordable to a larger number of investors and increase liquidity. The other options either affect the total equity directly or reduce the number of shares outstanding.

Which One of the Following Does Not Affect the Total