n NISM Certifications
XV NISM Series XV
Medium

Which of the following company actions are purely accounting in nature and have no tangible effect on shareholders?

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

Options

  1. A

    Stock Split

  2. B

    Bonus Issue

  3. C

    Stock Consolidation

  4. All of the above

    Correct answer

Why this is the answer

Stock splits, bonus issues, and stock consolidations adjust the number of shares or share price without changing the total value of shareholders’ investments.

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