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WorksheetsCorporate Actions
Total questions: 20
Worksheet time: 12mins
If someone purchased shares for a company on the ex dividend date, are they likely to be eligible for the dividend payment?
Yes
No
What is the record date for dividends?
Determining the payment and ownership of stock
When all details need to be provided to the share registry
The actual payment date
The account reconciliation date
Which statement is correct for a Share split?
A share split is the multiplication of shares into a larger number of shares each with a correspondingly larger market value.
A share split is the subdivision of shares into a larger number of shares each with a correspondingly lower market value.
A share split is the multiplication of shares into a larger number of shares each with a correspondingly lower market value.
A share split is the subdivision of shares into a smaller number of shares with a marginably higher value
which of the following shares issued to existing shareholders when company wishes to raise further capital ?
sweat equity
right issue
bonus shares
none of the above
If a company issues a 5 : 6 stock, an investor will have more shares after the split is executed and the price per share will be higher than the pre-split price.
True
False
What does a buyback of shares indicate?
The company's confidence in itself
The company's intention to go public
The company's financial distress
The company's plan to acquire other companies
What is the purpose of a buyback of shares?
To invest in the company by buying shares from other investors
To increase the number of outstanding shares
To reduce the profitability on a per-share basis
To discourage other companies from taking over
How does a rights issue work?
Shareholders can subscribe to the rights issue in proportion to their shareholding
Shareholders can subscribe to the rights issue at a fixed price
Shareholders can subscribe to the rights issue for free
Shareholders can subscribe to the rights issue only if they own a certain number of shares
What is the difference between a bonus issue and a stock split?
In a bonus issue, additional shares are given for free, while in a stock split, the face value changes
In a bonus issue, the face value changes, while in a stock split, additional shares are given for free
A bonus issue and a stock split are the same thing
A bonus issue and a stock split have no impact on the stock price
What are corporate actions?
Financial initiatives undertaken by a company that result in a change to its stock price
Actions taken by the government to regulate the stock market
Strategies used by investors to manipulate stock prices
Methods used by companies to hide their financial health
What is the difference between a dividend and a bonus issue?
A dividend is a cash payment, while a bonus issue is a stock dividend
A dividend is a stock dividend, while a bonus issue is a cash payment
A dividend and a bonus issue are the same thing
A dividend and a bonus issue have no impact on the stock price
What is the impact of a buyback on the share price?
It is usually positive for the share price
It is usually negative for the share price
It has no impact on the share price
It causes the share price to fluctuate
The company can buyback _____ kinds of shares
Eq and debentures
Sweat eq and bonus shares
Pref and redeemable shares
Equity and pref shares
Which of the following is true for the Rights issue
A. Done by the already listed company
B. Issue securities to its new investors (as on a Record date)
C. Record Date is fixed by issuer
A & C are True
A & B are True
A & B & C are True
A is True
How are dividends paid?
Directly to the shareholder's bank account
In the form of additional shares
As a discount on future stock purchases
Through physical checks sent by mail
What are dividends?
Portions of profits distributed to shareholders
Payments made by shareholders to the company
Fees charged by brokers for trading stocks
Investments made by companies in new projects
What is the purpose of a dividend in corporate actions?
To decrease the company's stock price
To increase the company's debt
To attract new employees to the company
To distribute a portion of the company's profits to its shareholders
What is a buyback and how does it affect the company's outstanding shares?
A buyback has no effect on the company's outstanding shares.
A buyback increases the company's outstanding shares.
A buyback only affects the company's debt, not the outstanding shares.
A buyback reduces the company's outstanding shares.
Dividends are only paid to existing shareholders.
True
False
Which of the following is a non-monetary corporate action?
Rights issue
Bonus issue
Stock split
All of the above
