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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.

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Suggested Answer: C

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

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Marjory
17 days 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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Rueben
27 days 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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Izetta
1 days ago
A) Stock splits do not change the collective wealth of shareholders.
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Derick
1 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
19 days ago
That's correct, shareholders' wealth remains the same after these actions.
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Ena
21 days ago
Exactly, stock splits and bonus shares are just cosmetic changes.
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Jesusita
27 days 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
4 days ago
You're right, it's important to understand these concepts before the exam.
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Garry
6 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
8 days ago
D) All of the following
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Tyra
9 days ago
C) Right shares
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Merrilee
10 days ago
B) Bonus shares
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Joesph
14 days ago
A) Stock splits
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Sabina
16 days ago
Yeah, I agree. It's important to understand these concepts before the exam.
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Reuben
1 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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Marquetta
Exactly, it's a way to adjust the number of shares without affecting the total value.
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Laticia
1 days ago
So, all these options just redistribute the wealth among shareholders.
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Marguerita
19 days ago
Yes, that's correct. The answer is D - all of the following.
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Lavonda
29 days ago
I agree, stock splits, bonus shares, and right shares do not change the collective wealth of shareholders.
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Fallon
2 months ago
I think the answer is A) Stock splits.
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Desmond
2 months ago
I see your point, Ailene. But I think it's actually B) Bonus shares because they are issued to existing shareholders without any cash outflow.
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Ailene
2 months ago
I disagree, I believe it's D) All of the following because all three options can impact shareholder wealth.
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Noah
2 months ago
I think the answer is A) Stock splits.
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