New All India SEBI Grade A Scholarship Test on June 11, 2023
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Question

Statement : In the backdrop of Maruti Suzuki share touching the milestone of ₹ 10,000 and questions on whether the company would consider a ‘stock split’ to make it more affordable for small retail investors, chairman R C Bhargava said he personally was not in favor of such a move as there was no lack of buyers at the current price.

Which of the following assumption(s) is implicit?

Assumptions :

I. The share value of Maruti Suzuki is rising.

II. ₹ 10,000 share price is not affordable for small retail investors.

III. Many people are buying the shares of Maruti Suzuki.

A Both II and III Correct Answer Incorrect Answer
B Only II Correct Answer Incorrect Answer
C Only III Correct Answer Incorrect Answer
D All of the above Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Since 10,000 Rs. is considered as a milestone, the value is definitely rising. Thus I is implicit. Since speculations are that small retail investors may not find it affordable, and thus people are questioning if the stock split is being considered by the company. II is implicit. There is no lack of buyers at this price this means many people are buying the shares of Maruti Suzuki. Thus III is implicit.

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