A stock split does not change the total number of shares or the total equity of a company. Instead, it increases the number of shares outstanding and decreases the price per share. Therefore, it does not impact Assets or Stockholders' Equity, nor does it specifically affect Common Stock or Paid-in Capital.

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A Stock Split

Question 102

Multiple Choice

A stock split:

A) increases Assets and decreases Stockholders' Equity.
B) decreases Assets and increases Stockholders' Equity.
C) increases Common Stock and decreases Paid-in Capital.
D) has no effect on total equity.

Correct Answer: