n NISM Certifications
X NISM Series X
Medium

After a share consolidation ratio of 2-for-1, Vijay’s 10,000 shares at Rs. 230 each are re-recorded at Rs. 460 per share, reflecting the share exchange ratio and preserving the cost basis.

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

Options

  1. A

    Rs. 350

  2. B

    Rs. 230

  3. C

    Rs. 540

  4. Rs. 460

    Correct answer

Why this is the answer

Share consolidation reduces the number of shares but preserves the total cost basis; the per-share cost adjusts accordingly, here Rs. 460.

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