n NISM Certifications
VII NISM Series VII
Medium

When does the adjustment for a corporate action take place?

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

Options

  1. A

    On the last day the security is traded on a cum basis before trading hours close

  2. On the last day the security is traded on a cum basis after trading hours close

    Correct answer

  3. C

    On the last day the security is traded on a cum basis during trading hours close

Why this is the answer

Corporate action adjustments occur after market hours on the last cum-trading day of the underlying security.

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NISM Series VII Mock Test 5