Examlex
Which of the following statements is TRUE according to this theory?
Stock Split
A stock split is a corporate action where a company divides its existing shares into multiple shares to boost liquidity, though the overall market capitalization remains unchanged.
Shares Outstanding
The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.
Treasury Stock
Shares that were once outstanding and have been reacquired by the corporation, reducing the amount of outstanding stock on the open market.
Paid-In Capital
Funds that are received by a company from investors in exchange for stock, representing the capital provided by shareholders as a part of the equity of the company.
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