n NISM Certifications
X NISM Series X
Medium

A stock split reduces face value from Rs 10 to Rs 2, and the pre-split market price was Rs 1000. What is the expected price on the ex-date?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs 1000

  2. B

    Rs 500

  3. Rs 200

    Correct answer

  4. D

    No impact on market price

Why this is the answer

The price adjusts proportionally: Rs 1000 / 5 = Rs 200.

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