n NISM Certifications
VII NISM Series VII
Medium

One way an issuer distributes cash benefits to shareholders is ______.

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Bonus Shares

  2. Cash Dividend

    Correct answer

  3. C

    ESOP

  4. D

    Capital Gains

Why this is the answer

Cash dividends are direct cash benefits declared by the issuer. Bonus shares capitalize reserves, ESOPs are employee stock options, and capital gains arise from selling securities.

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