Which one of the following reduces the number of shares outstanding but does not decrease the value of owners' equity?
A)Stock repurchase
B)Stock split
C)Reverse stock split
D)Cash distribution
E)Liquidating dividend

Question

Quizplus · Accepted Answer

A reverse stock split reduces the number of shares outstanding by consolidating them, but it does not affect the total value of owners' equity, as the market price per share typically adjusts to reflect the change in the number of shares.

Which One of the Following Reduces the Number of Shares