An increase in the ﬁrm's number of shares outstanding without any change in owners' equity is called a ________________.

Question

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A stock split is a process by which a company increases the number of its outstanding shares while maintaining the same market capitalization. This is achieved by dividing each existing share into multiple shares, thereby reducing the price per share. The owners' equity remains the same, as the total value of the firm is still represented by the same amount of assets and liabilities. A special dividend is a one-time payout to shareholders, a share repurchase involves the company buying back its own stock, a tender offer is a bid by a third party to buy a large portion of a company's shares, and a liquidating dividend is a payout to shareholders from a company that is closing or liquidating. None of these options match the description given in the question.

An Increase in the ﬁRm's Number of Shares Outstanding Without