An increase in the number of issued and outstanding shares of stock along with a proportional reduction in the stock's par value per share is a:

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A stock split is when a company increases the number of shares of its stock outstanding by issuing more shares to its current shareholders. The stock's par value per share is then reduced, but the overall value of the shareholders' investment remains the same. This is done to make the stock more affordable to purchase for individual investors and to increase liquidity in the market. A deficit is a negative balance in a company's financial records. A stock dividend is when a company issues additional shares of stock to its shareholders as a form of dividend payment. A cash dividend is when a company pays a dividend in cash to its shareholders.

An Increase in the Number of Issued and Outstanding Shares