When a Bank Sells Capital Stock (Equity Shares) in Return

Multiple Choice

When a bank sells capital stock (equity shares) in return for cash:

A) The capital stock increases the assets side and the cash increases the liabilities side
B) The capital stock decreases the liabilities and the cash increases the assets side
C) The capital stock increases the net worth and the cash increases the liabilities
D) The capital stock increases the net worth and the cash increases the assets side