n NISM Certifications
VII NISM Series VII
Medium

When the dividend is announced after closing of the market, the ___________ closing price is taken as market price to ascertain if the dividend is ordinary or extraordinary.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Previous day’s

  2. Same day’s

    Correct answer

  3. C

    Next day’s

  4. D

    Average of last 3 days

Why this is the answer

If a dividend is announced after market hours, the same day’s closing price is used to determine if the dividend is ordinary or extraordinary.

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