n NISM Certifications
V-A NISM Series V-A
Medium

The dividend declared on units under lien is paid to ______.

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Always to the lien holder

  2. B

    Always to the unit holder

  3. The lien holder or the unit holder, as per the agreement

    Correct answer

  4. D

    Units under lien do not receive any dividends

Why this is the answer

: If a unit is under lien, the dividend can go either to the unit holder or the lien holder, depending on the mutual agreement in place.

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