n NISM Certifications
X NISM Series X
Medium

A person is investing in shares whose market prices are lower than their book value. This style of investing is generally known as ______.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Stock Picking

  2. B

    Conservative Investing

  3. C

    Growth Investing

  4. Value Investing

    Correct answer

Why this is the answer

Value investing is an investment strategy that involves selecting stocks that appear to be undervalued by the market, meaning their current market price is lower than their intrinsic or book value, with the expectation that the price will rise over time.

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