n NISM Certifications
X NISM Series X
Medium

Shares in an investee company that are subject to 'Tag along rights' require the buyer to purchase these shares if they wish to acquire other shares, ensuring minority shareholders can exit on the same terms.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Preference in liquidation

  2. B

    Tagged first for dividends

  3. C

    Shares of all shareholders tagged together

  4. Buyer obligated to buy these shares to acquire the rest

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.