Which one of the following increases the number of shares outstanding but does not increase the value of owner's equity?

Question

Quizplus · Accepted Answer

A share split involves increasing the number of outstanding shares while decreasing the share price proportionally. This does not affect the value of owner's equity because the proportion of ownership remains the same, only the number of shares has increased. While each individual share may be worth less after a split, the total value of the shares remains the same. Therefore, a share split does not increase the value of owner's equity but only increases the number of shares outstanding.

Which One of the Following Increases the Number of Shares