Skip to content

NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Public Offering / Corporate Actions

A company announces a bonus issue in the ratio of 1:2 (one bonus share for every two held). Mr. Iyer holds 1,000 shares in his demat account on the record date. How many shares will be credited to his account as bonus?

Mr. Iyer receives 500 bonus shares. A 1:2 bonus gives one new share for every two held, so 1,000 shares divided by two gives 500, taking his total holding to 1,500 shares after credit.

  1. A500 sharesCorrect
  2. B1,000 shares
  3. C2,000 shares
  4. D250 shares

Explanation

A 1:2 bonus means one new share for every two held. 1,000 / 2 = 500 bonus shares. Crediting 1,000 would be a 1:1 ratio, and 2,000 would reverse the ratio. His total holding becomes 1,500 shares.

Did you get it right without looking?

One question tells you little. A timed set on Special Services - Public Offering / Corporate Actions shows your real accuracy, how long you take and where you lose marks.

Practise Special Services - Public Offering / Corporate ActionsFree diagnostic mock

More Special Services - Public Offering / Corporate Actions questions