American Bankers Association Exam CTFA Topic 9 Question 58 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 58
Topic #: 9

[All CTFA Questions]

_____ do not change the collective wealth of shareholders.

AStock splits

BBonus shares

CRight shares

DAll of the following

Show Suggested Answer

Suggested Answer: C

by Golda at Jan 22, 2024, 11:50 PM

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Marjory

1 months ago

As an investor, I'm always looking to maximize my returns. But these corporate actions just move the pieces around the board, they don't actually grow the pie. Gotta love finance humor!

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Nadine

5 days ago

A) Stock splits

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Rueben

1 months ago

I almost went with C, but then I remembered that right shares just give existing shareholders the option to buy more shares at a discount. D is the way to go here.

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Corinne

1 days ago

C) Right shares do not change the collective wealth of shareholders.

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Veta

6 days ago

B) Bonus shares do not change the collective wealth of shareholders.

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Izetta

16 days ago

A) Stock splits do not change the collective wealth of shareholders.

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Derick

2 months ago

Haha, trick question! The answer is clearly D. These corporate actions just shuffle the shares around, they don't actually create new wealth. Easy peasy.

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Kaitlyn

1 months ago

That's correct, shareholders' wealth remains the same after these actions.

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Ena

1 months ago

Exactly, stock splits and bonus shares are just cosmetic changes.

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Jesusita

1 months ago

You're right, it's all about redistributing the existing wealth.

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Yvonne

2 months ago

I see your point, Maxima. I also think it's D) All of the following because all three options do not affect the overall wealth of shareholders.

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France

2 months ago

Hmm, this is a tricky one. I was thinking it might be A, but D makes sense too. Guess I'll have to review my investment concepts before the exam.

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Shenika

19 days ago

You're right, it's important to understand these concepts before the exam.

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Garry

21 days ago

I think it's D because all of these options do not change the collective wealth of shareholders.

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Ashley

23 days ago

D) All of the following

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Tyra

24 days ago

C) Right shares

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Merrilee

25 days ago

B) Bonus shares

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Joesph

29 days ago

A) Stock splits

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Sabina

1 months ago

Yeah, I agree. It's important to understand these concepts before the exam.

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Reuben

2 months ago

I think it's D, because all of those options do not change the collective wealth of shareholders.

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Maxima

2 months ago

I disagree, I believe it's D) All of the following because bonus shares and right shares also do not change the collective wealth of shareholders.

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Galen

2 months ago

Stock splits, bonus shares, and right shares all redistribute the wealth without changing the overall value. I'm pretty sure the answer is D - all of the above.

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