Q1. [1] § 8.1 Corporate Actions
Amit holds 400 shares of X Ltd. Company decides to implement a stock spilt of 4 for 1. How many shares Mr. Amit will hold how many shares after this corporate action?
- (a) 400
- (b) 1600
- (c) 100
- (d) 800
Previously asked in CBSE board exam
2023 92 Q4 (v)
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
(b) 1600
In a 4-for-1 stock split, each existing share becomes 4 shares. So, 400 × 4 = 1600 shares.
Explanation
The source passage directly uses this exact example: an investor holding 400 shares after a 4-for-1 split holds 1600 shares. Multiply existing shares by the split ratio (4). Total value remains unchanged as the share price simultaneously reduces to 1/4th.
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