When an individual or entity,such as a superannuation fund,buys some shares on the stock exchange the total equity of the company in which the shares are purchased:
A)increases
B)remains unchanged
C)decreases
D)will be greater than total liabilities

Question

Quizplus · Accepted Answer

When shares are bought on the stock exchange, they are purchased from existing shareholders, not directly from the company. Therefore, the company's total equity remains unchanged.

When an Individual or Entity,such as a Superannuation Fund,buys Some