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Financial Market Management — CBSE Class 10 board question

Q1. [1]
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?
  1. (a) 400
  2. (b) 1600
  3. (c) 100
  4. (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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