n NISM Certifications
X NISM Series X
Medium

On the ex-date of a stock split reducing face value from Rs 10 to Rs 2, with a pre-split price of Rs 1000, what is the expected market price?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — 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

Why this is the answer

The price adjusts in proportion to the split ratio (Rs 1000 / 5 = Rs 200).

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