n NISM Certifications
X NISM Series X
Medium

The equity share of Pioneer Ltd. is trading at Rs. 100, with a face value of Rs. 10. After a stock split reducing face value to Rs. 2, the approximate market price on ex-date is:

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 25

  2. Rs. 20

    Correct answer

  3. C

    Rs. 50

  4. D

    No change

Why this is the answer

Price adjusts proportionally; Rs. 100 × (2/10) = Rs. 20.

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