Which Feature Is Common to Both Stock Splits and Stock

question 97

Multiple Choice

Which feature is common to both stock splits and stock dividends?

• A)A reduction in total stockholders' equity.
• B)A reduction in retained earnings.
• C)An increase in the value of common shareholders' equity.
• D)An increase in the number of shares outstanding.

---

Definitions:

Reverse Fault

A type of fault where the hanging wall moves upward relative to the footwall, typically associated with compressional stress.

Strike-Slip Fault

A type of fault where two blocks of Earth's crust slide past each other horizontally, often causing earthquakes.

Oblique-Slip Faults

Faults that combine features of both strike-slip and dip-slip faults, moving both horizontally and vertically.

Normal Fault

A type of fault where the hanging wall moves downward relative to the footwall due to tensional forces.