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Q. Which of the following corporate actions may affect the proportional ownership of existing equity investors?

A. Stock split
B. Stock dividend
C. Share repurchase​

1 Answer

2 votes

Answer:

C. Share repurchase​

Step-by-step explanation:

The share repurchase is the company's action of buying back a percentage or all the shares it had previously sold to the public. In share repurchase, a company buys it owns shares from the marketplace. Share repurchase increases a company's stake in its equity.

Share repurchase reduces the outstanding share in the market while increasing its stake. This action alters the proportion of ownership in the company.

Stock dividends are profits to be distributed to shareholders. A stock split is usually proportionate to shares held; hence doe not affect the overall propositions of ownership.