NISM XV Corporate Actions — Practice Questions
Practice corporate actions questions for NISM Series XV — dividends, bonus, splits, rights issues, buybacks and their impact on price and ratios.
74 questions on Corporate Actions in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- Dividends & buybacks
- Bonus issues & stock splits
- Rights issues
- Impact on valuation
Free sample questions
1. The 'record date' for a corporate action is the date that —
- A. determines which shareholders are eligible for the action ✅
- B. the share is first listed
- C. the AGM is held
- D. the dividend is actually paid
Answer: A — determines which shareholders are eligible for the action
Why: Shareholders on the company's register as of the record date are entitled to the corporate action (dividend, bonus, etc.).
💡 Record date = who's eligible.
2. The 'ex-date' of a dividend is the date from which the share —
- A. starts paying interest
- B. trades without the right to the upcoming dividend ✅
- C. is delisted
- D. doubles in price
Answer: B — trades without the right to the upcoming dividend
Why: On and after the ex-date, a buyer is not entitled to the declared dividend, and the price typically adjusts down accordingly.
💡 Ex-date = trading without the benefit.
3. Dividend yield is calculated as —
- A. market price ÷ EPS
- B. dividend per share ÷ face value
- C. dividend per share ÷ market price per share ✅
- D. net profit ÷ sales
Answer: C — dividend per share ÷ market price per share
Why: Dividend yield = dividend per share ÷ current market price — the cash return relative to the price paid.
💡 Dividend yield = DPS ÷ market price.
Practise all 74 Corporate Actions questions
Plus the full 620-question bank and real-feel mock exams.