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Miscellaneous Class 10 Questions and Answers provides a collection of important questions and easy-to-understand answers from different topics related to financial markets and investment. It includes useful concepts that may not fall under a single chapter or topic. These questions are helpful for Class 10 students for revision, practice, and exam preparation.
Miscellaneous Class 10 Questions and Answers
Q. Companies may issue shares to their shareholders without charge, proportionate to the number of shares owned by each shareholder. Identify the share. (CBSE 2025-26)
(A) Equity share
(B) Rights issue
(C) Preference share
(D) Bonus share
Answer: (D) Bonus share
Q. Do stock splits, corporate actions have an effect on corresponding shares held by an investor ? (CBSE 2025-26)
(A) No change in investors’ holdings.
(B) Yes, the number of shares held by investors increased to double.
(C) Yes, the number of shares held by investors increased in proportionate ratio in which a stock spilt.
(D) Yes, the number of shares held by investors decreased in proportionate ratio in which a stock split.
Answer: (C) Yes, the number of shares held by investors increased in proportionate ratio in which a stock spilt.
Q. __________ is a percentage of the face value of a share that a company returns to its shareholders from its annual profit. (CBSE 2024-25)
(A) Dividends
(B) Capital gain
(C) Profit
(D) Interest
Answer: (A) Dividends
Q. Under the SEBI (Buy Back of Securities) Regulations, 1998, a company is permitted to buy back its shares from ____________. (CBSE COMP 2024-25)
(i) Existing shareholders on a proportionate basis through the offer document
(ii) Open market through stock exchanges using book building process
(iii) Shareholders holding odd lot shares
Choose the correct options :
(A) (i) and (iii)
(B) (ii) and (iii)
(C) (i) and (ii)
(D) (i), (ii) and (iii)
Answer: (D) (i), (ii) and (iii)
Q. As the price of a security gets higher and higher, some investors may feel the price is too high for them to buy, or small investors may feel it is unaffordable. Splitting the stock brings the share price down to a more “attractive” level. Which corporate action is this ? (CBSE 2023-24)
(a) Dividend Payment
(b) Buyback of share
(c) Bonus share
(d) Stock splits
Answer: (d) Stock splits
Q. In case one of parties to the dispute is not satisfied with the complaint resolution process provided by the exchange then the concerned party may avail the provided by the exchange. (CBSE 2023-24)
(a) Clearing Corporation
(b) Arbitration
(c) SEBI
(d) Court
Answer: (b) Arbitration
Q. After distributing dividends, a part of the profit is retained by the company for meeting fund requirements in future. The retained profits accumulated over the years are called : (CBSE 2023-24)
(a) General Profit
(b) Capital Gain
(c) Reserves and Surplus
(d) Net Profit
Answer: (c) Reserves and Surplus
Q. 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 ? (CBSE 2022-23)
(a) 400
(b) 1600
(c) 100
(d) 800
Answer: (b) 1600
Q. A part of the profit is retained by the company for meeting fund requirements in future. (CBSE 2022-23)
(a) Dividend
(b) Interest
(c) Reserves and Surplus
(d) Revenue
Answer: (c) Reserves and Surplus
Q. Explain any two of the following terms : (CBSE 2023-24)
(a) Ex-Date
Answer: Ex-Date is the first day of the no-delivery period. If an investor buys shares on or after the ex-date, he/she will not be eligible to receive corporate benefits such as dividend, bonus shares or rights issue.
(b) Investor Protection Fund
Answer: Investor Protection Fund (IPF) is a fund maintained by NSE to settle claims of investors when a trading member is declared a defaulter. It helps protect investors from losses arising due to non-settlement of obligations by a defaulting broker.
(c) Record Date
Answer: Record Date is the date fixed by a company to determine the shareholders who are eligible to receive corporate benefits such as dividend, bonus shares and rights shares.
Q. Companies distribute a portion of their profits as dividends to their shareholders. Dividend yield measures the quantum of earnings by the way of total dividends that investors make by investing in that company. In the context of this para, how dividend yield is calculated and find dividend yield with given information. Market price of share ~ 500 and annual dividend paid is 20. (CBSE 2023-24)
Answer:
Formula:
- Dividend Yield = (Annual Dividend / Market Price per Share) x 100
- = (20 / 500) x 100
- = 4%
Dividend Yield = 4%
Q. An investor holds 100 shares of ABC Ltd. The company’s face value of a share is ₹ 10. The company decided stock split in 1 : 1 ratio. What would be the face value of company’s share after this corporate action ? (CBSE COMP 2024-25)
Answer: In a 1 : 1 stock split, each share is split into two shares.
- New Face Value = Rs. 10 / 2
- = Rs. 5
Face value after stock split = Rs. 5 per share
Q. There are different corporate actions that an entity can choose option to initiate. Corporate actions have an impact on stock prices. It is an event that brings material changes to the company and affects its stakeholders. A good understanding of these corporate actions give a clear picture of the company’s financial health and determines whether to buy or sell a particular stock. In the context of this para, give the meaning of corporate actions. State the different types of corporate actions. (CBSE COMP 2024-25)
Answer: Corporate Actions are events initiated by a company that bring changes in its securities and affect its shareholders.
Types of Corporate Actions:
- Dividend
- Stock Split
- Bonus Issue
- Rights Issue
- Buyback of Shares
Q. What is a Bonus share ? (CBSE 2023-24)
Answer: Bonus Shares are shares issued by a company to its existing shareholders free of cost based on the number of shares already held by them.
Q. Mention two examples of ‘Corporate Actions’. (CBSE 2022-23)
Answer:
- Dividend
- Stock Split
Q. Define the following terms : (CBSE 2022-23)
(a) Record Date
Answer: Record Date is the date on which the company determines the names of shareholders who are entitled to receive corporate benefits such as dividends, bonus shares or rights issues.
(b) Pay-out
Answer: Pay-out Day is the day on which securities are delivered to buyers and funds are paid to sellers by the exchange.
Q. What is Pay-in-Day ? (CBSE 2025-26)
Answer: Pay-in Day is the day when sellers deliver securities to the exchange and buyers make payment for the securities purchased.
Q. What is a record date ? (CBSE 2025-26)
Answer: Record Date is the date fixed by a company for determining the shareholders who are eligible to receive corporate benefits such as dividend, bonus shares and rights shares.
Q. “Nifty is barometer of the Indian markets.” In the light of this statement define ‘Nifty’. (CBSE 2024-25)
Answer: Nifty is a scientifically developed 50-stock index of NSE. It reflects the movement of the Indian stock market and is considered the barometer of Indian markets.
Q. “A clearing corporation plays a crucial role in managing risk in financial markets.” What is the primary risk that clearing corporation mitigate, and how do they achieve this ? (CBSE 2025-26)
Answer: The primary risk mitigated by a clearing corporation is counterparty risk, which arises when one party fails to fulfil its settlement obligations.
A clearing corporation reduces this risk by:
- Providing a financial guarantee for all transactions.
- Ensuring proper clearing and settlement of trades.
Q. Explain the following : (CBSE 2025-26)
(a) Aim of Investor Protection Fund
Answer: The aim of the Investor Protection Fund is to compensate investors whose claims arise due to the default of a trading member. It protects the interests of investors and promotes confidence in the securities market.
(b) Role of Arbitration
Answer: Arbitration is a dispute resolution mechanism provided by stock exchanges. It helps resolve disputes between trading members and their clients relating to trades executed on the exchange.
Q. “National Clearing Limited (NCL), a 100% subsidiary of NSE, performs the role of a clearing corporation for transactions executed on the NSE.” In this context define the clearing corporation and explain the role of clearing corporation. (CBSE 2022-23)
Answer: A Clearing Corporation is an organization that clears and settles transactions executed on a stock exchange.
Role of Clearing Corporation:
- It clears and settles all transactions.
- It provides financial guarantee for trades.
- It performs risk management functions.
Q. By what name the corporate action which splits the existing shares of a particular face value into smaller denominations is called ? (CBSE 2021-22)
Answer: The corporate action is called Stock Split.
Q. Explain any two fuentions of clearing corporation. (CBSE 2021-22)
Answer:
- It clears and settles all transactions executed on the stock exchange.
- It provides financial guarantee for all transactions and manages settlement risk.
Q. What do you mean by ‘Reserves and Surplus’ ? (CBSE 2021-22)
Answer: After distributing dividends, a part of the profit is retained by the company for future fund requirements. These accumulated retained profits are known as Reserves and Surplus.
Q. “When a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. Existing shares split, but the underlying value remains the same.” Describe stock split and split of shares by a company. (CBSE 2021-22)
Answer: A Stock Split is a corporate action in which existing shares of a particular face value are divided into smaller denominations.
As a result:
- The number of shares increases.
- The face value of each share decreases.
- The market value of the investor’s holding remains unchanged.
- The market capitalization of the company remains the same.
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