SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 51: Answer and Explanation

Question: 51

Which of the following is NOT a corporate action?

• A. Tender offer
• B. Stock reverse split
• C. Stock buyback
• D. Change in market price of its securities

Correct Answer: D

Explanation:

D: Choice D is correct because corporate actions typically only occur when approved by the shareholders, when required shareholders' responses are submitted, or when approved by the board of directors. Change in market price does not require any of those actions. Choices A, B, and C are incorrect because they are corporate actions.